The reason sunk costs are irrelevant to decision making is that
A) they are fixed.
B) they are non-monetary.
C) they will be borne no matter which particular action is chosen.
D) they tend to be forgotten.
E) they result from poor decision making.

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered. They should be ignored in decision making because they are irretrievable and will not change regardless of the decision made. Therefore, the best choice is C, as regardless of the decision made, the sunk costs will still be the same.

The Reason Sunk Costs Are Irrelevant to Decision Making Is