Cost items that do not change between the alternative choices involved in the decision are not relevant to the decision to be made as they will be incurred no matter which alternative is chosen.

Question

Quizplus · Accepted Answer

This is because cost items that do not change between the alternatives are called sunk costs, which means that they are already incurred and cannot be recovered regardless of the decision made. Therefore, they should not be considered when making the decision.

Cost Items That Do Not Change Between the Alternative Choices