A cost that is unavoidable regardless of the actions of a decision maker is called:
A) a sunk cost.
B) a marginal cost.
C) an opportunity cost.
D) an incremental cost.

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered, regardless of the decision maker's actions. They should not be considered in future decision making, as they are irrelevant to the current situation.

A Cost That Is Unavoidable Regardless of the Actions of a Decision