Asked by Rhonda Golden on Jul 25, 2024
Verified
Because nothing can be done about sunk costs, they are irrelevant to decisions about business strategy.
Sunk Costs
Costs that have already been incurred and cannot be recovered.
Business Strategy
It's a plan of action designed by business leaders to achieve competitive advantage and successfully compete in the market.
- Expound on how opportunity costs, sunk costs, and fixed costs impact decision-making and profitability in businesses.
Verified Answer
PS
Preety SumraJul 27, 2024
Final Answer :
True
Explanation :
Sunk costs are past costs that have already been incurred and cannot be recovered, so they should not influence future business strategy decisions, which should be based on incremental costs and benefits.
Learning Objectives
- Expound on how opportunity costs, sunk costs, and fixed costs impact decision-making and profitability in businesses.
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