____ are defined as costs which are incurred regardless of the alternative action chosen in a decision-making problem.
A) Opportunity costs
B) Marginal costs
C) Relevant costs
D) Sunk costs
E) None of the above

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered. They are irrelevant to future decision-making as they do not vary depending on the alternative action chosen.

____ Are Defined as Costs Which Are Incurred Regardless of the Alternative