Costs that do NOT change as the result of a future decision are known as:

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered or changed. Therefore, they should not be considered in future decision-making as they are irrelevant to the decision. Out-of-pocket costs are expenses that will be incurred as a result of a future decision, and differential costs are the difference between two alternative options. Variable costs are costs that may change as a result of a future decision.

Costs That Do NOT Change as the Result of a Future