Asked by Reylan Davis on May 28, 2024
Verified
A cost that differs from one month to another is known as a sunk cost.
Sunk Cost
A cost that has already been incurred and cannot be recovered, and thus should not impact future business decisions.
- Understand the importance of opportunity and sunk costs in the process of making decisions.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
False
Explanation :
A sunk cost is a cost that has already been incurred and cannot be recovered. It is not dependent on changes in time, and therefore does not differ from one month to another.
Learning Objectives
- Understand the importance of opportunity and sunk costs in the process of making decisions.