Which of the following is a sunk cost?
A)Operating costs for a new vehicle
B)Trade in value of old vehicle
C)Purchase price of vehicle to be traded in
D)Purchase price of new vehicle

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered. The purchase price of the vehicle to be traded in is a sunk cost because it has already been spent and cannot be recovered, regardless of future actions.

Which of the Following Is a Sunk Cost