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26 January, 11:54

The cost incurred by a firm through the foregone earnings on capital invested is a (n) :

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  1. 26 January, 12:48
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    The answer is sunk cost

    This incurred cost usually could not be recovered in any way.

    For example, let's say for the business operation, you make a prepaid rent for a building for the whole year.

    In this situation, the prepaid rent could be considered as a sunk cost because it's already incurred and not recoverable anymore
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