Fixed costs that do not differ between alternatives are sunk costs

Name: Fixed costs that do not differ between alternatives are sunk costs
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered, not necessarily fixed costs that do not differ between alternatives. Fixed costs that do not differ between alternatives are considered irrelevant costs for decision-making purposes but are not specifically termed sunk costs.

Fixed Costs That Do Not Differ Between Alternatives Are Sunk