Which of the following is the best example of a sunk cost?

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered regardless of the decision made, such as historical research and development costs. Future payments on a leased building and future research and development costs are not sunk costs as they are still to be incurred and can be avoided if a different decision is made. Historical noncash expenses may or may not be sunk costs depending on their nature.

Which of the Following Is the Best Example of a Sunk