Which of the following best describes the concept of "sunk costs"?
A) Costs that will be incurred regardless of what decision is made
B) Costs that are the same between competing alternatives
C) Costs that are relevant to the decision process
D) Costs that have already been incurred and cannot be avoided
E) None of the above

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered, so they should not influence future business decisions.

Which of the Following Best Describes the Concept of "Sunk