A cost that cannot be recovered and must not be allowed to affect any economic decision is called .

variable cost

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fallen cost

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sunk cost

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explicit cost

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Solution

The correct option is C sunk cost
Sunk costs are costs which have been incurred, and cannot be recovered regardless of the firm's profit/loss situation. These should not be allowed to influence decision making.

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A cost that cannot be recovered and must not be allowed to affect any economic decision is called .

The correct option is C sunk costSunk costs are costs which have been incurred, and cannot be recovered regardless of the firm's profit/loss situation. These should not be allowed to influence decision making.

The correct option is C sunk cost
Sunk costs are costs which have been incurred, and cannot be recovered regardless of the firm's profit/loss situation. These should not be allowed to influence decision making.