Question

A cost that has already been paid, or a liability to pay that has already been incurred, is classified as a(n):

Answer 1

Sunk cost

Step-by-step explanation:

The sunk cost is a type of cost which is already spent or incurred by company these cost are not relevant for the decision making as for the decision making only relevant cost is to be considered

It is a past cost that cannot be recovered back.

hence, as per the given situation, it is a sunk cost and the same is to be considered