Which of the following statements about decision-making is true?
A) Risk should not be taken into account.
B) Objectives should be quantitative and not qualitative.
C) Opportunity cost should be considered.
D) Sunk costs should usually be taken into account.

Question

Quizplus · Accepted Answer

Opportunity cost should be considered in decision-making as it reflects the potential benefit that could have been gained from the next best option. Ignoring opportunity cost can lead to poor decision-making that fails to capture potential value. Risk should also be taken into account, and while objectives can be either quantitative or qualitative, they should be relevant to the decision at hand. Sunk costs, on the other hand, should generally be ignored as they are costs that have already been incurred and cannot be recovered, and should not influence future decisions.

Which of the Following Statements About Decision-Making Is True