When Making Choices, Suppliers Should Not Allow Sunk Costs to Directly

question 99

Multiple Choice

When making choices, suppliers should not allow sunk costs to directly affect their current decisions because

• A) sunk costs do not reflect foregone opportunities accompanying current choices.
• B) sunk costs will not influence the accounting costs of a firm.
• C) sunk costs influence the demand for products, not the supply.
• D) past choices fail to provide any information relevant to current decision making.

---

Definitions:

Share Information

The act of making data, knowledge, or insights available to others for the purpose of collaboration or informed decision-making.

Monitor Role

The function of regularly checking and observing the progress or quality of something over a period of time.

Instills Enthusiasm

The process of inspiring excitement and energetic interest in others.

Mintzberg

Refers to Henry Mintzberg, a renowned academic and author known for his work on business strategy, management, and organizational structures.