Select the Incorrect Statement Regarding Sunk Costs

question 13

Multiple Choice

Select the incorrect statement regarding sunk costs.

• A) Sunk costs cannot be avoided.
• B) Sunk costs are relevant if they differ between the alternatives.
• C) Sunk costs are costs that have been incurred in past transactions.
• D) Sunk costs include historical costs such as equipment acquisition costs.

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Definitions:

Transitional Expressions

Words or phrases used to connect ideas, paragraphs, or sentences to enhance flow and coherence in writing.

Pronouns

Words used to replace nouns, often to avoid repetition and to speak about someone without stating their name.

Scratch List

A preliminary list or plan, often informal, used for initial thoughts, ideas, or tasks before finalizing details.

Hierarchical Plan

An organizational structure or strategy that arranges elements or figures according to levels of importance or authority.