A sunk cost is:

Name: A sunk cost is:
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Question

A sunk cost is:

Quizplus · Accepted Answer

A sunk cost is a cost that has already been incurred and cannot be recovered or changed, and is therefore not relevant to decision making. It should not be taken into account when making future decisions. Option A is incorrect as it refers to a potential cost savings, which is not related to sunk costs. Option C is incorrect as it refers to an opportunity cost, which is a different concept. Option D is incorrect as a sunk cost can be both variable and fixed.

A Sunk Cost Is