Question

Which of the following best describes a​ "sunk cost"?

a. Expected future data that differ among alternatives.
b. Costs that were incurred in the past and cannot be changed.
c. A factor that restricts the production or sale of a product.
d. Benefits foregone by choosing a particular alternative course of action.

Answer 1

b. Costs that were incurred in the past and cannot be changed.

Step-by-step explanation:

Sunk Cost -

It is the cost which has incurred in the previous time and can not be recovered , is known as sunk cost .

The sunk cost is not thought during the process of decision making of any presently running project , being a non recoverable cost .

Hence , from the given option the correct statement for sunk cost is ( b. ) .