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Hi JOhn!
From your lectures, I do have understood the reasons why sunk or committed costs are not relevant costs.
But in general, how would a business recover these cost, especially if is a one off contract?
Sunk costs are things like market research done to see if a new contract is worth accepting. They would not spend the money in the first place without having prepared budgets to make sure that they could afford to lose the money if it turned out that the new contract would not be worthwhile.
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