After constructing a new factory, the cost of building the factory is a
A) sunk cost.
B) variable cost.
C) past cost.
D) None of the above answers is correct.

Name: After constructing a new factory, the cost of building the factory is a A) sunk cost. B) variable cost. C) past cost. D) None of the above answers is correct.
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Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered. The cost of building a factory is a sunk cost because it has already been spent and cannot be recovered.

After Constructing a New Factory, the Cost of Building the Factory