Question

"Good Earth, a company manufacturing packaged food products, sets up its stores in Baltonia. However, a year later, the company closes the store down due to high operating costs. In such a scenario, the money spent in paying for the rent of the store in Baltonia would be an example of _____ costs."

Answer 1

The correct answer is "sunk cost"

Step-by-step explanation:

A sunk cost is a cost that has already been provoked and cannot be salvaged. Sunk costs are a sum paid that are omitted from future business determinations because the cost won't change independently of the type of decision.