Which of the Following Best Describes the Concept of Sunk

question 6

Multiple Choice

Which of the following best describes the concept of sunk costs?  

• A) They can only be measured in monetary terms. 
• B) They are opportunity costs. 
• C) They should influence a person's choice if that person is a marginal decision maker. 
• D) They should NOT be considered when making economic decisions.

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Definitions:

Just-In-Time Manufacturing

A production strategy that strives to improve business efficiency by reducing in-process inventory and associated carrying costs, delivering materials just as they are needed.

Supply Chains

The entire system of producing and delivering a product or service, from the raw materials to the final consumer.

Global Procurement

The process of sourcing goods and services from the global market to exploit global efficiencies, such as lower cost or enhanced quality and innovation.

Big Data

Describes extremely large data sets that users can analyze to uncover important and helpful statistical patterns, trends, and associations.