Costco requires all customers to buy a one-time membership before they can shop. The membership fee is not a sunk cost because the savings on Costco purchases are more than the membership fee.

Question

Quizplus · Accepted Answer

The membership fee is considered a sunk cost because it is a cost that has already been incurred and cannot be recovered, regardless of future savings or benefits from shopping at Costco.

Costco Requires All Customers to Buy a One-Time Membership Before