Asked by Jennaia Asenati on Jul 20, 2024
Verified
Sunk costs include any cost that:
A) Will change if a project is undertaken.
B) Will be incurred if a project is accepted.
C) Has previously been incurred and cannot be changed.
D) Is paid to a third party and cannot be refunded for any reason whatsoever.
E) Will occur if a project is accepted and once incurred, cannot be recouped.
Sunk Costs
Expenses that have already been incurred and cannot be recovered.
Project Undertaken
Refers to a specific initiative or task that has been started or committed to, usually within a business or professional context.
- Distinguish and organize diverse kinds of expenditures pertinent to project appraisal, like sunk costs and opportunity costs.
Verified Answer
DJ
Diamond JacksonJul 25, 2024
Final Answer :
C
Explanation :
Sunk costs are costs that have already been incurred and cannot be recovered or changed, regardless of future actions.
Learning Objectives
- Distinguish and organize diverse kinds of expenditures pertinent to project appraisal, like sunk costs and opportunity costs.