Which of the Following Is True of Sunk Costs

question 169

Multiple Choice

Which of the following is true of sunk costs?

• A)Similar to opportunity costs
• B)Not included in initial cash flow
• C)Often combined with terminal cash flow
• D)Deciding factor in most project decisions
• E)Similar to variable costs

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Definitions:

Theory of Reasoned Action

A psychological theory that explains an individual's behavior based on their intention to perform the behavior, which is influenced by their attitudes and subjective norms.

Predicting Behaviour

The process of forecasting individuals' future actions based on past and current behavior patterns, often used in psychology and marketing.

Original Fishbein Model

A psychological model developed by Martin Fishbein in the 1960s, used to predict behaviors based on an individual's attitudes towards the behavior and subjective norms.

Alterations

Changes made to the fit, style, or design of clothing to improve its appearance or utility.