Q:
      
      
         
            
Sometimes project managers forget all of the expenses that they can incur on a project, such as capital resources and assets. This can have an impact upon their budgets and the economic return on the project. A cost that has been incurred and cannot be reversed is known as a 
         
       
      
      
      
          
      
      
          Answer & Explanation
         Answer: D) Sunk Cost         
         
Explanation: Answer D is correct because a sunk cost is a project expense that will eventualy need to be paid. Answer A is incorrect because a fixed cost remains constant, regardless of any change in a company's activity. Answer B is incorrect because direct cost can be directly linked to producing specific goods or services. Answer C is incorrect because a variable cost changes in proportion to a change in the company's activity or business.
       
      
      
      
          View Answer
          Report Error
          Discuss