Sunk costs:

A) have future implications.

B) are relevant.

C) are ignored when evaluating alternatives.

D) are differential.

Question

Business

Chapman

30 October, 22:13

Sunk costs:

A) have future implications.

B) are relevant.

C) are ignored when evaluating alternatives.

D) are differential.

+5

Answers (1)

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Allie · Answer 1

The correct answer to the following question is option C) this cost is ignored when evaluating alternatives.

Explanation:

Sunk cost which is also know as retrospective cost, where it can be described as a cost that business has already incurred and this cost cannot be recovered. These cost are usually ignored when decisions regarding future business are being taken, the reason behind this that the business will have to incurred this cost and it will remain the same no matter what decision is being taken.

Sunk costs:A) have future implications.B) are relevant.C) are ignored when evaluating alternatives.D) are differential.

Sunk costs:

A) have future implications.

B) are relevant.

C) are ignored when evaluating alternatives.

D) are differential.