Asked by
Gianna Vinciguerra
on Dec 01, 2024
Verified
Sunk costs are also called opportunity or alternative costs.
Sunk Costs
Expenses that have already been incurred and cannot be recovered.
Opportunity Costs
The cost of opting for one choice over another, representing the benefits missed out on when choosing one alternative over another.
- Separate relevant from irrelevant expenditures in project analysis, incorporating an understanding of both sunk costs and costs associated with foregone opportunities.
Verified Answer
JH
Learning Objectives
- Separate relevant from irrelevant expenditures in project analysis, incorporating an understanding of both sunk costs and costs associated with foregone opportunities.