When Would Sunk Costs Be Irrelevant for Current Decision Making

question 13

Multiple Choice

When would sunk costs be irrelevant for current decision making?

• A) when the sunk costs are computed using accounting methods
• B) when the sunk costs are greater than variable costs
• C) when the sunk costs have been incurred only a short time ago
• D) Sunk cost are always irrelevant when making current decisions.

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Definitions:

Ingratiation

A psychological technique wherein an individual attempts to become more likable to their target, often through flattery or other forms of manipulation.

Silent Authority

An influencing tactic that relies on unspoken but acknowledged power.

Information Control

A hard influencing tactic in which key information is withheld in order to manipulate outcomes.

Inspirational Appeals

Utilize emotional arguments or enthusiastic statements to persuade or motivate others towards a certain action or behavior.