A sunk cost is never a relevant cost.Sunk costs cannot change depending on the alternative,so they are never relevant.

Name: A sunk cost is never a relevant cost.Sunk costs cannot change depending on the alternative,so they are never relevant.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered regardless of the alternative chosen. Therefore, they are not relevant to future decisions and cannot be changed by choosing a different alternative.

A Sunk Cost Is Never a Relevant Cost