What Is a Sunk Cost

question 30

Multiple Choice

What is a sunk cost?

• A)A significant cost that has the potential to "sink" the organization.
• B)A cost that has already occurred, but still must be considered in the decision process.
• C)A cost that has already occurred and therefore is not relevant in the decision process.
• D)A cost that cannot be changed.

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Definitions:

Range of Output

The difference between the maximum and minimum levels of production output possible for a given firm or industry.

Cakes

Baked goods made from ingredients such as flour, sugar, eggs, and butter, often prepared and decorated for special occasions.

Average Total Cost

The total cost of production divided by the total quantity of output produced.

Mixers

Devices or software used to combine multiple audio signals into one or more output channels.