A sunk cost is:
A)A cost that can be directly traced to a decision option.
B)A past expenditure that cannot be changed.
C)A cost that does not change as the volume of activity changes.
D)A controllable cost.
E)None of the above.

Question

Quizplus · Accepted Answer

A sunk cost is a past cost that has already been incurred and cannot be recovered or changed. It is irrelevant to current and future decision making and should not be considered in making new decisions.

A Sunk Cost Is