Sunk cost are costs that have been incurred and cannot be eliminated regardless of the alternative chosen.
What is sunk cost?
Sunk cost are past cost that cannot be recovered. They are irrecoverable cost or money that has been incurred or paid.
It is to be noted that sunk cost is not to be given though to especially when making future business decisions because it cannot be recovered.
Examples of sunk cost are :
- Research into a new product.
- New software system and working practices.
Hence, sunk cost are costs that have been incurred and cannot be eliminated regardless of the alternative chosen
Learn more about sunk cost here: https://brainly.com/question/14848662
