Which of the following best describes a "sunk cost"?

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

b. Costs that were incurred in the past and cannot be changed.

Explanation:

Sunk Cost -

It is the cost which has incurred in the previous time and can not be recovered , is known as sunk cost .

The sunk cost is not thought during the process of decision making of any presently running project , being a non recoverable cost .

Hence , from the given option the correct statement for sunk cost is ( b. ) .

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