Sunk costs are . . . . . . . . for decision-making

April 15, 2024 by rawan239

are irrelevant to future decisions because they cannot be changed. For example, if you have already bought a ticket to a concert, the cost of the ticket is a sunk cost. It does not matter whether you go to the concert or not, you will not get your money back. Therefore, the cost of the ticket should not be considered when making a decision about whether to go to the concert.

Option B is incorrect because sunk costs are irrelevant to future decisions. Option C is incorrect because sunk costs are not useful for decision-making. Option D is incorrect because sunk costs are relevant to past decisions, but they are not relevant to future decisions.