When would sunk costs be irrelevant for current decision making?
A) when the sunk costs are computed using accounting methods
B) when the sunk costs are greater than variable costs
C) when the sunk costs have been incurred only a short time ago
D) Sunk cost are always irrelevant when making current decisions.

Question

Quizplus · Accepted Answer

Sunk costs are past costs that have already been incurred and cannot be recovered, making them irrelevant to current decision-making, which should focus on future costs and benefits.

When Would Sunk Costs Be Irrelevant for Current Decision Making