-Which of the costs listed in the table are sunk costs?
A) Expenditures on research and development.
B) Interest payments on plant and equipment.
C) Salaries for engineers.
D) Salaries for support staff.
E) Materials costs.

Question

-Which of the costs listed in the table are sunk costs?
A) Expenditures on research and development. 
B) Interest payments on plant and equipment. 
C) Salaries for engineers. 
D) Salaries for support staff. 
E) Materials costs.

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered. Expenditures on research and development are considered sunk costs because they are spent in the past and cannot be recovered regardless of future actions.

-Which of the Costs Listed in the Table Are Sunk