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?

Question

Mathematics

Jeffery Howard

Yesterday, 20:35

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?

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Answers (1)

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Leach · Answer 1

Answer: sunk cost

Step-by-step explanation:

In business, sunk cost refer to money that has already been spent and cannot be recovered such as payment for rent, production machineries etc.