Which of the Following Describes a Sunk Cost

question 244

Multiple Choice

Which of the following describes a sunk cost?

• A) One that is relevant to a decision because it changes depending on the alternative course of action selected
• B) An outlay expected to be incurred in the future
• C) A historical cost that is always irrelevant
• D) A historical cost that may be relevant

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Definitions:

Hypothetical

Involving or based on a suggested idea or theory rather than actual evidence.

Presupposition

Something assumed beforehand at the beginning of a line of argument or course of action.

Group Decision Making

The process by which a group of individuals come together to make a decision, typically through discussion and considering multiple perspectives.

Truth-Seeking

Means that a person has intellectual integrity and a courageous desire to actively strive for the best possible knowledge in any given situation. A truth-seeker asks probing questions and follows reasons and evidence wherever they lead, even if the results go against his or her cherished beliefs.