In deciding whether to sell a product or to process it further, which of the following pieces of information would not be relevant to the decision?

Question

Quizplus · Accepted Answer

The costs incurred up to the decision point are sunk costs and cannot be changed or recovered. Therefore, they are not relevant to the decision of whether to sell the product or process it further. The relevant factors are the costs of further processing, the sales price if processed further, and the customer demand with further processing, as they will affect the profitability of the decision.

In Deciding Whether to Sell a Product or to Process