ECONOMICS

Detailed explanation-1: -Sunk costs are the costs which have been created by a decision that was made in the past and cannot be changed by any decisions that will be made in the future. A sunk cost cannot be recovered and are considered irrelevant for future decision making.

Detailed explanation-2: -Irrelevant costs are those that will not change in the future when you make one decision versus another. Examples of irrelevant costs are sunk costs, committed costs, or overheads as these cannot be avoided.

Detailed explanation-3: -Sunk costs are those which have already been incurred and which are unrecoverable. In business, sunk costs are typically not included in consideration when making future decisions, as they are seen as irrelevant to current and future budgetary concerns.

Detailed explanation-4: -In financial accounting, sunk costs must have already occurred and they cannot be changed or avoided in the future.

Detailed explanation-5: -Sunk costs are those costs that happened and there is not one thing we can do about it. These costs are never relevant in our decision making process because they already happened. These costs are never a differential cost, meaning, they are always irrelevant.