Question

_________ cost refers to the cost which have already been incurred and cannot be altered by any decision in the future.

• A. Opportunity cost
• B. Sunk cost
• C. Incremental cost
• D. Decremental cost

Answer 1

The correct option is B Sunk cost

The sunk cost is that cost which has already been incurred and can not be recovered. Sunk cost is considered irrelevant in future decision making as this has already been incurred.