Which of the Statements Below Is Correct About Sunk Costs

question 67

Multiple Choice

Which of the statements below is correct about sunk costs

• A)Sunk costs are relevant to long-run decisions but not to short-run decisions.
• B)Sunk costs acts as a substitute for opportunity costs.
• C)Sunk costs are always relevant to decision making.
• D)Sunk costs are not relevant to decision making.

Recognize the importance of post-audit in capital budgeting and how it can provide feedback on the investment's performance.

Understand the effect of tax implications on cash flows from capital investments.

Understand the concepts of payback method and time value of money in capital budgeting decisions.

Identify the role of preference decisions in the context of capital budgeting.

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Definitions:

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The process by which a counselor's political beliefs and biases unintentionally influence their relationship with and perception of a client.

Personal Reaction

An individual's immediate response or feeling towards a particular situation or stimulus.

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An individual who provides assistance, support, or service to others, often in a context of health, social services, or emergency situations.

Racial Microaggressions

Subtle, often unintentional, indignities or demeaning messages conveyed to individuals based on their racial or ethnic background.