When a company is considering the option of processing their product further to achieve higher sales revenues, they must consider all of the following factors EXCEPT:

Question

Quizplus · Accepted Answer

The cost required to produce the basic product, before processing further, is a sunk cost and not relevant to the decision of whether to process the product further. The decision should be based on additional costs and benefits that occur as a result of further processing.

When a Company Is Considering the Option of Processing Their