Sunk Costs Are

question 22

Multiple Choice

Sunk costs are:

• A) costs of replacing an item today.
• B) costs incurred and no longer recoverable.
• C) costs of an item discounted at an appropriate rate.
• D) equivalent to the historical cost of an item.

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Definitions:

Anchoring Bias

A cognitive bias where individuals rely too heavily on an initial piece of information to make subsequent judgments or decisions.

Confirmation Error

A cognitive bias that involves focusing on information that confirms existing beliefs and ignoring information that contradicts them.

Ethics Double-check

A review process designed to ensure that actions or decisions align with moral and professional standards of conduct.

Ethical Decision Making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles and values.