# Which of the following is a sunk cost for an ice cream shop? A) ice cream ingredients B) ice...

## Question:

Which of the following is a sunk cost for an ice cream shop?

A) ice cream ingredients

B) ice cream cones

C) melted ice cream

D) an ice cream scoop

## Sunk Costs:

In the production process, a firm incurs several costs, some which are projected and others which are not. A sunk cost in economics and finance is a cost that has already incurred but cannot be recovered. Thus, sunk costs are those costs that are irretrievable when the firm leaves the industry. Normally, when making economic decisions, sunk costs are not taken into account.

## Answer and Explanation: 1

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View this answerThe correct answer is: C) **melted ice cream**

For an ice cream store, melted ice is one of the costs incurred by the shop and which is irretrievable....

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Chapter 31 / Lesson 8Understand 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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