Sunk costs are:

A. relevant for decision making

B. Not relevant for decision making

C. cost to be incurred in future

D. future costs

Answer: Option B

Solution(By Examveda Team)

Sunk costs are not relevant for decision making. A sunk cost is a cost that cannot be recovered or changed and is independent of any future costs a business may incur. Since decision-making only affects the future course of business, sunk costs should be irrelevant in the decision-making process.