A sunk cost is described as which of the following?
A)One that is relevant to a decision because it changes depending on the alternative course of action selected
B)A historical cost that is always irrelevant
C)An outlay expected to be incurred in the future
D)A historical cost that may be relevant

Question

Quizplus · Accepted Answer

A sunk cost is a cost that has already been incurred and cannot be recovered, hence it is a historical cost. Furthermore, sunk costs are always irrelevant to decisions that need to be made, as they cannot be changed regardless of the alternative course of action selected.

A Sunk Cost Is Described as Which of the Following