A sunk cost has already been incurred and cannot be avoided or changed, so it is irrelevant to decision making.

Name: A sunk cost has already been incurred and cannot be avoided or changed, so it is irrelevant to decision making.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A sunk cost is a cost that has already been spent and cannot be recovered. It is not relevant to decision making because it cannot be changed or avoided. Decisions should be based on future costs and benefits, not past costs that cannot be recovered.

A Sunk Cost Has Already Been Incurred and Cannot Be