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Basic Question 6 of 16
Which of the following best describes a sunk cost?
B. A form of financing cost
C. The same thing as an opportunity cost
D. A cost that has already been incurred and cannot be removed
E. The cash flows of a new project that come at the expense of existing projects
A. An important consideration in the capital allocation process
B. A form of financing cost
C. The same thing as an opportunity cost
D. A cost that has already been incurred and cannot be removed
E. The cash flows of a new project that come at the expense of existing projects
User Contributed Comments 3
| User | Comment |
|---|---|
| DonAnd | an unrecoverable cost |
| Dmoney | someone explain? jk JV concept |
| tichas | Cost that has already been incurred in the past and no longer relevant for future decision making. |
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Learning Outcome Statements
describe principles of capital allocation and common capital allocation pitfalls
CFA® 2024 Level I Curriculum, Volume 2, Module 5.