"We have the space and the staff for this new project. They won't cost us a penny." Such a statement seems to ignore the concept of:
A)sunk costs.
B)costs in other parts of the company.
C)fixed costs.
D)opportunity costs.
E)depreciation not taken.

Question

Quizplus · Accepted Answer

The statement suggests that the project won't cost anything, but it fails to consider the opportunity costs of using the space and staff for this new project instead of using them for other potential projects or activities. Opportunity cost refers to the cost of the next best alternative forgone when a decision is made.

"We Have the Space and the Staff for This New