Asked by Miguel Santos on Jun 03, 2024
Verified
A sunk cost should be ignored in decisions about future actions.
Sunk Cost
Expenses that have already been incurred and cannot be recovered, which should not influence current or future business decisions.
- Recognize the implications of sunk costs in economic decisions.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
True
Explanation :
Sunk costs are costs that have already been incurred and cannot be recovered. They should not be considered in decisions about future actions since they cannot be changed. Instead, decision-makers should focus on the marginal costs and benefits of future actions.
Learning Objectives
- Recognize the implications of sunk costs in economic decisions.