Which of the Following Statements Best Describes a Sunk Cost

Multiple Choice

Which of the following statements best describes a sunk cost?

A) A sunk cost is any cost that must be expended in order to complete a project and bring it into operation.
B) A sunk cost is any cost that was expended in the past but can be recovered if the firm decides not to go forward with the project.
C) A sunk cost is a cost that was incurred and expensed in the past and cannot be recovered if the firm decides not to go forward with the project.
D) A sunk cost is any cost not directly related to the physical work required to complete the project.