Q200
Sunk costs are:
A.
relevant for decision making
B.
Not relevant for decision making
AnswerC.
cost to be incurred in future
D.
future costs
Answer: Option B
Solution
Answer: Option B
Solution:
Sunk costs are not relevant for decision making. A sunk cost is a cost that cannot be recovered or changed and is independent of any future costs a business may incur. Since decision-making only affects the future course of business, sunk costs should be irrelevant in the decision-making process.