Quiz Chapter 02 Graded Quiz This Question 2 pts Which of the

Quiz: Chapter 02 Graded Quiz This Question: 2 pts Which of the following is false? A. Sunk costs are generally relevant to decisions. O B. The difference in cost between two alternatives is known as a differential cost O C. Sunk costs are costs that have already been incurred O D. Uncontrol lable costs are costs over which the company has little or no control in the short run.

Solution

Answer to the question is

A. Sunk cost are generally relevant to decisions.

Reason:

Sunk cost refers to the cost that has already been incurred and cannot be recovered. Thus these cost have no impact on future decsion making.