The cost of owning an automobile is a sunk cost.

Name: The cost of owning an automobile is a sunk cost.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

A sunk cost is a cost that has already been incurred and cannot be recovered. The cost of owning an automobile, such as buying the car, paying for insurance and maintenance, and gasoline, is a sunk cost because once the money has been spent, it cannot be retrieved. It is not a future cost that can be avoided by changing a decision.

The Cost of Owning an Automobile Is a Sunk Cost