Escalation of Commitment to a Losing Course of Action Could

question 233

True/False

Escalation of commitment to a losing course of action could be an example of the improper treatment of sunk costs.

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Definitions:

User Cost

The cost associated with the use of a capital good, which includes the opportunity cost of not using the good in an alternative way and the depreciation cost.

Quantity Extracted

The amount of a resource or good that is removed or harvested from its source over a specific period.

Beginning of Year

The starting point of a calendar year or fiscal year used for accounting and other chronological purposes.

Extract

To remove or take out something, often using effort or force, particularly from a complex mixture or compound.