Is this is a sunk or relevent cost: To assess the financial viability of the new one-year service, in the first two (2) weeks of November 2023 the company employed a financial consultant for a fee of 5,000. The consultant's work has been completed but the fee has not yet been paid. The company's intention is to charge the fee for the financial viability report to the company's annual income statement of the financial year ending 31 January 2024. Unfortunately, the consultant had an argument with Logi Service's Chief Financial Officer and has refused to release the financial viability report.  

Answer rating: 100% (QA)

The fee of 5000 paid to the financial consultant is a sunk cost A sunk cos... View the full answer