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    Question

    A cost that has already been incurred and cannot be

    recovered is known as a:
    A Opportunity Cost Correct Answer Incorrect Answer
    B Sunk Cost Correct Answer Incorrect Answer
    C Incremental Cost Correct Answer Incorrect Answer
    D Imputed Cost Correct Answer Incorrect Answer

    Solution

    Sunk costs are historical costs that have already been incurred and cannot be changed by any current or future decision. For decision-making purposes, sunk costs are irrelevant and should not be considered.

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