Sunk Costs

question 66

Multiple Choice

Sunk costs

• A) Can be ignored because they have no effect on marginal costs
• B) Should be taken into consideration when choosing the best level of an activity
• C) Should not be ignored because they lead to higher marginal costs
• D) Can be ignored because they don't have to be paid by the decision maker

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Definitions:

Restricted Stock Option Plans

These are employee benefit plans that grant employees stock options with restrictions on sale or transfer until certain conditions, like vesting, are met.

Family-Friendly Benefits

A program that helps employees achieve better work–life balance.

Employee Benefits

Nonmonetary forms of compensation such as health benefits and retirement plans.

Monetary Forms

Various representations of money, including cash, checks, electronic transfers, and other means of financial transactions.