CFA Practice Question

There are 233 practice questions for this study session.

CFA Practice Question

Which of the following best describes a sunk cost?

A. An important consideration in the capital budgeting 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.
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