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:

Retrograde Amnesia

The inability to recall events or knowledge acquired before suffering an injury or the emergence of a disease.

Procedural Memories

Procedural memories are a type of long-term memory for performing certain actions and skills, essentially how to do things, such as riding a bicycle or playing an instrument.

Long-Term Memories

Memories that can be stored for an extended period, from days to decades.

Hippocampus

A major component of the brains of humans and other vertebrates, playing critical roles in the consolidation of information from short-term memory to long-term memory and in spatial memory that enables navigation.