Sunk Costs

question 68

Multiple Choice

Sunk costs

• A) are expenditures made in the past that cannot be regained no matter what is done now or in the future.
• B) are a component of variable costs, but not fixed costs.
• C) represent foregone opportunities, and therefore the firm's managers should consider these costs when they are making current decisions.
• D) can be avoided if the firm goes out of business.

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Definitions:

Discipline Problems

Issues related to the management of behavior and the enforcement of rules, typically in an educational or organizational setting.

Core Values

Fundamental beliefs or guiding principles that dictate behavior and action, forming the foundation of an individual’s or organization's identity.

Keeping an Open Mind

The willingness to consider or accept new and different ideas or opinions without prejudging.

Using a New-Ideas System

The process of implementing a structured approach to generate, evaluate, and implement innovative ideas within an organization.