The Jonah Corp. is considering dropping one of its product lines. Which of the following factors would not be relevant to making this decision?
A) The sunk cost of advertising that created the brand identity of the product
B) The impact of discontinuing the product on the company's overall reputation
C) The lost revenue from no longer selling these products
D) Interdependencies in costs and production with the company's other products

Question

Quizplus · Accepted Answer

The sunk cost of advertising is irrelevant because it cannot be recovered regardless of whether the product line is discontinued or not. The decision should focus on future costs and benefits.