Asked by Kathryn Turner on May 26, 2024
Verified
What are sunk costs?
A) Permanent losses of resources incurred as the result of cognitive biases in decision making
B) Temporary losses of resources incurred as the result of not making a decision
C) Permanent losses of resources incurred as the result of not making a decision
D) Temporary losses of resources incurred as the result of a decision
E) Permanent losses of resources incurred as the result of a decision
Sunk Costs
Costs that have already been incurred and cannot be recovered, which should not influence future business or personal decisions.
- Comprehend the impact and handling of sunk costs within decision-making practices.
Verified Answer
LB
lethy booshMay 28, 2024
Final Answer :
E
Explanation :
Sunk costs are costs that have already been incurred and cannot be recovered, typically resulting from past decisions. These costs should not influence future decisions since they cannot be changed or recovered.
Learning Objectives
- Comprehend the impact and handling of sunk costs within decision-making practices.
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