Which of the following statements is true?
A) Opportunity costs are never relevant for decision-making
B) Discretionary costs are never relevant for decision-making
C) Marginal costs are never relevant for decision-making
D) Sunk costs are never relevant for decision-making

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered. Since these costs cannot be changed or recovered, they are not relevant for decision-making. Therefore, option D is the correct choice. Options A, B, and C are incorrect since opportunity costs, discretionary costs, and marginal costs can all be important for decision-making in different contexts.

Which of the Following Statements Is True