When are sunk costs are omitted from decision analysis?
A)Always
B)Never
C)Only if necessary
D)Only if they are immaterial

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered. They are always omitted from decision analysis because they cannot be changed by any current or future action. Decision-making should focus on future costs and benefits, not on costs that have already been incurred and cannot be altered.

When Are Sunk Costs Are Omitted from Decision Analysis