Answer:
D.
Step-by-step explanation:
A sunk cost is a cost that a company has already incurred and can´t be recovered. These costs are often irrelevant while considering a new investment or any new project.
Sunk costs comes in the accounting cost since the company already pay for them. Since company has actually spent money on buying a machine, cost of machine is already in the accounts. Often companies add entire sunk cost in one go or on one financial year.
To minimize this costs:
-A periodic review of the investment and its benefits can fetch better results.
-Recognizing sunk costs early rather than building up the losses.
-Constantly keep in mind the target that you decided while starting the project.
-Considering other available.