Sunk Cost typically be ignored because spending has already been made and cannot be changed.
What do you mean by Sunk Cost ?
- A sunk cost is also called as a retrospective cost.
- It can be defined as an investment which has already incurred and can't be recovered.
- It includes marketing, research, new software installation or equipment, salaries and benefits, or facilities expenses.
- To find the sunk cost Subtract the current value from the as-new price.
- Example include Advertising expenditure , Research , Labor costs.
Hence, in the above case the correct answer is Option B.
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