Fixed costs are always sunk costs.

Name: Fixed costs are always sunk costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Fixed costs are not always sunk costs. Fixed costs are expenses that do not change with the level of production or sales, such as rent or salaries. Sunk costs are costs that have already been incurred and cannot be recovered. While some fixed costs can be sunk costs if they have already been paid and cannot be recovered, not all fixed costs are sunk, as some may be avoidable or recoverable in the future.

Fixed Costs Are Always Sunk Costs