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neonofarm [45]
3 years ago
10

When would sunk costs be irrelevant for current decision making?

Business
1 answer:
UkoKoshka [18]3 years ago
7 0

Sunk cost are always irrelevant when making current decisions.

Sunk cost is the cost that has already been incurred and cannot be recovered. Sunk cost should not be considered when making future economic decisions.

An example of sunk cost: A farmer buys a piece of land for $100,000. He plants on the land. Years later, the land becomes infertile. The farmer is considering selling the land. In this question, the cost of the land is sunk cost. The sunk cost is $100,000. The farmer should not consider this cost when determining if to sell the land or not.

To learn more about sunk cost, please check: brainly.com/question/17920044?referrer=searchResults

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Answer:

Rent of the building will remain the same

Explanation:

The fixed costs will not change because fixed cost remains fixed for any level of activity whereas the variable cost changes with the increase in level of activity. As the activity level will change with additional hours work which will increase the variable costs only. So all variable costs will increase whereas fixed will remain fixed. The all the other options were variable costs except rent which is fixed cost. So rent will no change because of additional hours worked.

6 0
4 years ago
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uranmaximum [27]

Answer:

The correct answer to the following question will be Option C.

Explanation:

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So that Option C is the right answer.

6 0
3 years ago
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Answer:

B

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may be the answer is B.

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8 0
3 years ago
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Answer:

$2.89

Explanation:

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3 years ago
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