Which of the following best describes a "sunk cost"? a. benefits foregone by choosing a particular alternative course of action b. expected future data that differ among alternatives c. a factor that restricts the production or sale of a product d. costs that were incurred in the past and cannot be changed

D.

Explanation:

A sunk cost is a cost that a company has already incurred and can´t be recovered. These costs are often irrelevant while considering a new investment or any new project.

Sunk costs comes in the accounting cost since the company already pay for them. Since company has actually spent money on buying a machine, cost of machine is already in the accounts. Often companies add entire sunk cost in one go or on one financial year.

To minimize this costs:

-A periodic review of the investment and its benefits can fetch better results.

-Recognizing sunk costs early rather than building up the losses.

-Constantly keep in mind the target that you decided while starting the project.

-Considering other available.

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