Question

Sunk costs are important for optimal decision making. are costs that have already been paid and cannot be recaptured in any significant way. are costs associated with repairing something you already own. are costs that firms sink into marketing.

Answer 1

Answer:

The correct answer is: are costs that have already been paid and cannot be recaptured in any significant way.

Explanation:

Sunk costs are the costs that have already been incurred in the past and cannot be recovered. These costs should not matter while making decisions as they have already been incurred.  

That is why these costs are not considered while making business decisions. They are considered as irrelevant to current decisions that are in direct contrast to relevant cost which are costs that are yet to be incurred in the future.