Question

Money that has been spent and cannot be recovered is known as ____ costs.

diversified
sunk
lost
wasteful

Answer 1

Money that has been spent and cannot be recovered is SUNK costs 

Answer 2

Money that has been spent and cannot be recovered is known as sunk costs. The term sunk cost is used in economics and business decision-making. It denotes a cost that has already been incurred. These costs are excluded from future business decisions because the cost will be the same regardless of the outcome of a decision