Sunk costs include any cost that:
A)will change if a project is undertaken.
B)will be incurred if a project is accepted.
C)has previously been incurred and cannot be changed.
D)will be paid to a third party and cannot be refunded for any reason whatsoever.
E)will occur if a project is accepted and once incurred,cannot be recouped.

Question

Quizplus · Accepted Answer

Sunk costs refer to costs that have already been incurred and cannot be changed or recouped. They are irrelevant in decision making since they cannot be recovered, and should not be factored into future costs or benefits. Therefore, option C is the correct choice as it correctly describes sunk costs.

Sunk Costs Include Any Cost That