Which is an example of a sunk cost?

CA Foundation · Business Economics · MTP · September 2025
Which is an example of a sunk cost?
(A) A. Cost of raw material
(B) B. Cost of hiring temporary workers
(C) C. Advertising expenditure already incurred
(D) D. Salaries to be paid

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Advertising expenditure already incurred

Topics: Theory of Production and Cost

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic