Which of the following best describes a "sunk cost"?

a. Expected future data that differ among alternatives.

b. Costs that were incurred in the past and cannot be changed.

c. A factor that restricts the production or sale of a product.

d. Benefits foregone by choosing a particular alternative course of action.

b. Costs that were incurred in the past and cannot be changed.

Explanation:

Sunk Cost -

It is the cost which has incurred in the previous time and can not be recovered, is known as sunk cost.

The sunk cost is not thought during the process of decision making of any presently running project, being a non recoverable cost.

Hence, from the given option the correct statement for sunk cost is (b.).