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:

Business Opportunities

Circumstances or situations that present potential for new business growth, expansion, or profitability.

Successful Entrepreneurs

Individuals who achieve their goals through innovation, risk-taking, and effectively managing their businesses, often resulting in profitable and sustainable ventures.

Competitors

Other businesses or entities that offer similar products or services, competing for the same target market or customer base.

Franchise

A business model that allows individuals or entities to operate a store or outlet using the branding, products, and operational methods of an established company.