Which of the following costs should be ignored when choosing among alternatives?
A) Opportunity costs.
B) Sunk costs.
C) Out-of-pocket costs.
D) Differential costs.
E) None of the other answers are correct.

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered by choosing any of the alternatives. Therefore, sunk costs should be ignored when choosing among alternatives. All other costs, including opportunity costs, out-of-pocket costs, and differential costs, should be considered.

Which of the Following Costs Should Be Ignored When Choosing