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"Good Earth, a company manufacturing packaged food products, sets up its stores in Baltonia. However, a year later, the company closes the store down due to high operating costs. In such a scenario, the money spent in paying for the rent of the store in Baltonia would be an example of _____ costs."

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esarango28

Answer:

The correct answer is "sunk cost"

Explanation:

A sunk cost is a cost that has already been provoked and cannot be salvaged. Sunk costs are a sum paid that are omitted from future business determinations because the cost won't change independently of the type of decision.

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