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State True or False Though sunk costs involve physical cash out-flows, they are irrelevant for decision making.

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Question ajoutée par Utilisateur supprimé
Date de publication: 2014/07/24
Alfred Jr. Santamaria
par Alfred Jr. Santamaria , State Auditor , Commission on Audit

True.  Costs are relevant for decision making when these are 1) Future costs and 2) Differs between or among alternatives.  Since sunk costs are costs that were already been incurred in the past, they are already irrelevant for decision making.

Malik Amin Muhammad Khan
par Malik Amin Muhammad Khan , Director Finance and Money Market Dealer , Pakistan Currency Exchange Pvt Lt; Franchise Dollar Shop

True. Sunk costs are irrelevant costs and should not be included in decision making process.

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