Which one of the following is the definition of a sunk cost?

A sunk cost refers to money that has already been spent and cannot be recovered.

What is a sunk cost quizlet?

Sunk Costs. is a cost that has already been incurred and cannot be recovered. Prospective Costs. are costs that may be incurred or changed if an action is taken.

Which of the following is an example of sunk costs?

A sunk cost is a cost that has already been spent but not recoverable in any case, and future business decisions should not be affected by past spent. Spending on researching, equipment or machinery buying, rent, payroll, marketing, or advertising expenses is the main example of sunk cost.

Which of the following is an example of a sunk cost quizlet?

The rent paid for an already existing facility is an example of a sunk cost. A cost may be relevant for one decision, but NOT relevant for a different decision.