Which of the following costs are relevant to decision making?
A) Sunk costs
B) Opportunity costs
C) Both of the above
D) None of the above

Question

Quizplus · Accepted Answer

Opportunity costs are relevant to decision making because they represent the benefits an entity gives up by choosing one option over another. Sunk costs, on the other hand, are costs that have already been incurred and cannot be recovered, so they should not influence the decision-making process.

Which of the Following Costs Are Relevant to Decision Making