If a decision must be made to close a warehouse,non-refundable prepaid rent on the warehouse is

Name: If a decision must be made to close a warehouse,non-refundable prepaid rent on the warehouse is
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Non-refundable prepaid rent on the warehouse is a sunk cost because the cost has already been paid and cannot be recovered. It should not be factored into the decision to close the warehouse. A sunk cost is a cost that has already been incurred and cannot be recovered or changed.

If a Decision Must Be Made to Close a Warehouse,non-Refundable