When fixed costs are ignored because they are irrelevant to a business's production decision,what are they called

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Sunk costs are past expenses that cannot be recovered and are therefore not relevant to a business's current decision-making process. Fixed costs are one type of sunk cost, as they do not change with the level of production and cannot be avoided in the short term. However, explicit costs (out-of-pocket expenses), implicit costs (opportunity costs), and variable costs are all relevant to a business's production decision, as they all affect the business's profitability and potential for growth.

When Fixed Costs Are Ignored Because They Are Irrelevant to a Business's