Cost that has been incurred in the past is referred to as
A)an avoidable cost.
B)a sunk cost.
C)an opportunity cost.
D)a relevant cost.

Name: Cost that has been incurred in the past is referred to as A)an avoidable cost. B)a sunk cost. C)an opportunity cost. D)a relevant cost.
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Quizplus · Accepted Answer

A sunk cost is a cost that has already been incurred and cannot be recovered. It is not relevant to future decisions, as it cannot be changed or avoided. Therefore, in decision-making, sunk costs should not be considered.

Cost That Has Been Incurred in the Past Is Referred