Which of the following costs are irrelevant in managerial decision making?
A) Explicit costs.
B) Implicit costs.
C) Sunk costs.
D) All of these costs are relevant.

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered or changed. They are irrelevant to future decisions because they will remain the same regardless of the outcome of any decision.

Which of the Following Costs Are Irrelevant in Managerial Decision