What term describes money and effort committed to an initiative?

The term that accurately describes money and effort committed to an initiative is "sunk cost." Sunk costs refer to resources that have already been spent and cannot be recovered. This concept is pivotal in decision-making processes; recognizing sunk costs can help individuals and organizations avoid the common fallacy of continuing a project simply because they have already invested significant resources into it.

In the context of decision-making, understanding sunk costs allows stakeholders to evaluate projects based on future benefits rather than past expenditures. Thus, acknowledging sunk costs focuses attention on the potential for future gains and the best allocation of remaining resources, rather than being influenced by what has already been lost.

The other options, while related to costs and resource management, do not fit the definition as directly. Opportunity cost pertains to the benefits that are foregone when choosing one alternative over another, while backlog management refers to the prioritization and management of tasks or projects. Impact analysis is the process of assessing the potential consequences or changes that might result from a particular decision or initiative.