Final Answer:
The term is used to represent unavoidable past costs that cannot be changed no matter what action is taken Sunk costs. The correct option is B. sunk cost.
Step-by-step explanation:
Sunk costs are the term used to represent unavoidable past costs that cannot be changed regardless of the course of action taken. These costs have already been incurred and are considered irrelevant to future decision-making because they cannot be recovered. The correct option is B. sunk cost.
In business decision-making, recognizing sunk costs is crucial to avoid making irrational choices based on past investments. Since these costs are unrecoverable, they should not influence decisions about future actions, investments, or projects. Instead, focus should be on relevant future costs and benefits.
These are expenses that have been invested in a project, business, or decision and are now irrelevant to future considerations. They should not influence future decisions because the money spent cannot be recovered. This emphasizes a crucial aspect of sunk costs—they are irreversible and cannot be recuperated. Regardless of future decisions, these costs remain unchanged.