Costs that can be considered sunk costs over a fixed period of time are called ____ costs.
A) Opportunity
B) Fixed
C) Incremental
D) Accounting
E) Erosion

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered, which aligns with the definition of fixed costs over a fixed period of time. Fixed costs do not change with the level of production or sales, such as rent, salaries, and depreciation, and once incurred, they cannot be recovered, making them sunk for that period.

Costs That Can Be Considered Sunk Costs Over a Fixed