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Any cost which is incurred in past is called "Sunk Cost" while any cost which has to be secrificed while choosing between different alternatives is called "opportunity cost"

For example you have purchased machinery for 100000 in previous year and earned 10000 and now you have chance to start producing some other product which will earn you 11000 then switching to new plan will cause you 10000 which you are expecting to earn in current year as well so that 10000 is the opportunity cost you will lose while the machinery cost is a sunk cost because no matter which alternative you choose you cannot change that purchase of machinery decision now.

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