All of the following can be differential costs except sunk costs.
Differential cost is the difference in costs between two possible decisions. The expense arises when a company must choose between multiple similar choices and choose one while rejecting the others.
Sunk costs are expenses that have already been paid for and cannot be recovered.
Sunk costs are often not taken into account in the company since they are seen to be unrelated to present and future budgetary concerns.
Relevant expenditures, on the other hand, are expenses for the future that have not yet occurred.
The sunk cost fallacy is a mental barrier that keeps people from moving on from failed projects just because they invested money in them.
Sunk costs examples include wages, insurance, rent, and nonrefundable deposits.
Hence, the correct answer is option c.
Learn more about opportunity costs:
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