Question

If a firm has already paid an expense or is obligated to pay one in the future, regardless of whether a particular project is undertaken, that expense is a:_________.

Answer 1

Answer:

sunk cost

Explanation:

Sunk cost -

It refers to the amount of money which is spend and can never be recovered back , is referred to as the sunk cost.

During the process of making any future decision , sunk money is never taken into consideration.

Hence, it differs from the future costs.

Therefore , from the scenario of the question,

The correct term is sunk cost.