Which cost is not relevant in making financial decisions?
A) Sunk costs.
B) Opportunity costs.
C) Incremental costs.
D) All three are relevant.

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered, therefore they are not relevant in making financial decisions. The remaining options (B and C) are both relevant in financial decision-making.

Which Cost Is Not Relevant in Making Financial Decisions