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.

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Definitions:

Standard Deviation

Standard Deviation is a measure of the amount of variation or dispersion of a set of values, indicating how spread out the data points are from the mean.

P-chart

A type of control chart used in statistical process control to monitor the proportion of defective items in a process and identify variations.

Constant Sample Size

A methodological strategy where the number of observations or data points in a study or experiment does not change.

R-chart

An R-chart is a type of control chart used in statistical process control to monitor the range of the process variation, helping businesses ensure product quality.