After constructing a new factory, the cost of building the factory is a
A) past cost.
B) sunk cost.
C) variable cost.
D) None of the above answers are correct.

Name: After constructing a new factory, the cost of building the factory is a A) past cost. B) sunk cost. C) variable cost. D) None of the above answers are correct.
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Question

Quizplus · Accepted Answer

A sunk cost is a cost that has already been incurred and cannot be recovered. Once the factory is built, the cost of construction is a sunk cost.

After Constructing a New Factory, the Cost of Building the Factory