226k views
5 votes
The cost incurred by a firm through the foregone earnings on capital invested is a(n):

User Andrin
by
8.0k points

1 Answer

4 votes
the answer is sunk cost
This incurred cost usually could not be recovered in any way.
For example, let's say for the business operation, you make a prepaid rent for a building for the whole year.
In this situation, the prepaid rent could be considered as a sunk cost because it's already incurred and not recoverable anymore
User Bee San
by
8.0k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.