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what is sunk cost

Answer Posted / uday

Sunk cost is Past cost and it will not reversed because it
is immaterial cost and there is no use to make the decision
making. for eg: If u Have one bike but your employer
offering fuel allowance per km Rs.2/- for Bike and Rs.3/-
for car. but already you have one bike so you can get only
Rs.2/- for Bike so that car cost is Rs 3/- is sunk cost
because you can know the cost only but it cannot be reversed.

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