Sunk costs are relevant to decisions about business strategy, as huge amounts of time have been invested in ensuring that the business is set up for success.

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered, and therefore should not influence future business strategy decisions. Decisions should be based on future costs and benefits.

Sunk Costs Are Relevant to Decisions About Business Strategy, as Huge