Fixed costs are the invariable expenditure in a firm’s operations. In organizations, some costs do not change despite the change in productivity. For example, rent and insurance costs to a firm remain the same despite fluctuations in production. Sunken cost is the money already spent in operations, e.g., production of a product. The money already spends on a project can only be recovered through proceeds or revenues.
What is the difference between fixed cost and sunk cost?
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Academic.Tips. 2021. "What is the difference between fixed cost and sunk cost?" July 8, 2021. https://academic.tips/question/what-is-the-difference-between-fixed-cost-and-sunk-cost/.
1. Academic.Tips. "What is the difference between fixed cost and sunk cost?" July 8, 2021. https://academic.tips/question/what-is-the-difference-between-fixed-cost-and-sunk-cost/.
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