Asked by Shahd Ajlani on Jun 27, 2024

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Not relevant to future decisions

A) Opportunity cost
B) Sunk cost
C) Theory of constraints
D) Differential analysis
E) Product cost distortion

Sunk Cost

Costs that have already been incurred and cannot be recovered, which should not factor into future business decisions.

Future Decisions

Choices or judgements that will be made in an upcoming period, often based on past and present information and forecasts.

  • Analyze the importance and practical use of opportunity cost, sunk cost, and distortion of product cost.
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SR
shreeya reddyJun 30, 2024
Final Answer :
B
Explanation :
Sunk costs are costs that have already been incurred and cannot be recovered, making them not relevant to future decisions.