Which of the following should be included in the analysis of a project?
I. sunk costs
II. opportunity costs
III. erosion costs
IV. incremental costs
A) I and II only
B) III and IV only
C) II and IV only
D) II, III, and IV only
E) I, II, and IV only

Question

Quizplus · Accepted Answer

Sunk costs are past costs and should not be included in the analysis. Opportunity costs, erosion costs, and incremental costs are relevant to the decision-making process and should be included.

Which of the Following Should Be Included in the Analysis