Sunk costs ________.
A) are future costs for decision making
B) are avoidable costs
C) are irrelevant for decision making
D) are foregone contribution by not using a limited resource in its next-best alternative use

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered. These costs are irrelevant for decision making because they cannot be changed and should not be factored into future decisions. It is important to focus on future costs and benefits when making decisions.

Sunk Costs ________