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Economics miscellaneous

  1. An expenditure that has been made and cannot be recovered is called
    1. Variable cost
    2. Opportunity cost
    3. Sunk cost
    4. Operational cost
Correct Option: C

In economics and business decision-making, sunk costs are retrospective (past) costs that have already been incurred and cannot be recovered. Sunk costs are sometimes contrasted with prospective costs, which are future costs that may be incurred or changed if an action is taken. The sunk cost is distinct from economic loss. Sunk costs may cause cost overrun.



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