Multiple choice

An expenditure that has been made and cannot be recovered is called

  1. variable cost

  2. opportunity cost

  3. sunk cost

  4. operational cost

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A sunk cost is money that has already been spent and cannot be recovered. It should not influence future decisions because it's irretrievable. Opportunity cost (B) refers to the value of the next best alternative foregone, while variable and operational costs refer to ongoing expenses.