Are all fixed costs also sunk costs? Explain.

Question:

Are all fixed costs also sunk costs? Explain.

Sunk Costs:

Sunk costs are those costs that have already been incurred and no future decision can recover such costs. As these cannot be recovered, they should have any bearing on future decisions.

Answer and Explanation: 1

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No, all fixed costs are not sunk costs. However, all sunk costs are fixed costs.

The definition of sunk costs tells us that sunk costs can never be...

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Sunk Costs: Definition & Examples

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Chapter 31 / Lesson 8
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Understand the sunk cost definition. Learn the meaning of sunk cost and sunk cost trap with the help of the sunk cost examples and sunk cost fallacy examples.


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