Sunk costs,unitizing costs,how costs are allocated,and leaving out opportunity costs are all factors where errors are often made,and will ultimately affect the outcome of the decision.

Question

Quizplus · Accepted Answer

Sunk costs are irrelevant to current decision-making, unitizing costs can be misleading if items are not uniform, incorrect allocation of costs can result in an inaccurate picture of cost structure, and not considering opportunity costs can lead to missed opportunities or inefficient decision-making. All of these factors can lead to errors in decision-making and affect the outcome.

Sunk Costs,unitizing Costs,how Costs Are Allocated,and Leaving Out Opportunity Costs