Chapter 56, Problem 4MCQ

To determine

Costs that should be ignored while making decisions

Explanation of Solution

Sunk costs should be ignored while making decisions because these costs always remain same no matter what is the output of result of the decision.

Therefore, the correct option is d.

Economics Concept Introduction

Introduction:

Sunk costs are those costs which cannot be recovered and money is spend on these costs such as marketing and installation of software for the business.