Sunk Costs Are Different from Other Concepts of Costs in That

question 76

Multiple Choice

Sunk costs are different from other concepts of costs in that they

• A) can be either variable or fixed.
• B) cannot be lessened by choosing any particular course of action.
• C) influence the decision of which activity to do or not do.
• D) rise as the level of the activity rises.
• E) must be included for an accurate cost-benefit analysis.

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Definitions:

Business Person

A business person is an individual engaged in activities related to the creation, management, or operation of a business entity, aiming for profit and growth.

Loyalty

The commitment of a customer, employee, or other stakeholder to a company, brand, or product.

Social Responsibility

The practice of businesses making decisions and taking actions that positively impact society and the environment, beyond their financial obligations.

Ethically Questionable Actions

Activities or decisions that raise concerns regarding their adherence to moral or ethical standards.