An expenditure that has already been made and cannot be recovered is called a _______ cost.
A) nonretrievable
B) floating
C) sunk
D) diseconomy of scale

Question

Quizplus · Accepted Answer

A sunk cost refers to an expenditure that has already been incurred and cannot be recovered. It is not relevant in decision-making because it cannot be changed or recovered regardless of future action. Nonretrievable is not a commonly used term in economics. Floating cost refers to a cost that changes with changes in production levels. Diseconomy of scale refers to a situation where the cost per unit increases as production increases beyond a certain level.

An Expenditure That Has Already Been Made and Cannot Be