CFA Practice Question

There are 481 practice questions for this topic.

CFA Practice Question

Which of the following best describes a sunk cost?

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
Correct Answer: D

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.
You need to log in first to add your comment.