ExamVeda
Login
Home
This question belongs to Commerce Costing
Costing
?

Sunk costs are:

Answer & Solution
Correct Answer: Option B
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.
Examveda
Question posted by Examveda
Community

Join the Discussion

No comments yet Be the first to discuss this question.