Asked by Vivek Patel on Jul 16, 2024
Verified
Sunk costs are monies that:
A) will be needed in the future.
B) have already been spent.
C) will be recaptured in the future.
D) deal with the future value of an annuity.
Sunk Costs
Costs that have been incurred and cannot be recovered, not affecting future business decisions.
- Classify costs as relevant or irrelevant in the context of project evaluation, which includes gaining insight into sunk costs and costs related to lost opportunities.
Verified Answer
SB
Sara Beth BryanJul 19, 2024
Final Answer :
B
Explanation :
Sunk costs refer to monies that have already been spent and cannot be recovered. They are not related to future needs or values.
Learning Objectives
- Classify costs as relevant or irrelevant in the context of project evaluation, which includes gaining insight into sunk costs and costs related to lost opportunities.