If the manager of a firm considers a sunk cost as part of a decision going forward, then she is

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Business

Lowery

29 October, 18:20

If the manager of a firm considers a sunk cost as part of a decision going forward, then she is

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Sadie Graves · Answer 1

If the manager of a firm considers a sunk cost as part of a decision going forward, then she is making the optimal decision for the firm. A sunk cost is a cost that has been incurred and cannot be recovered. In accounting, a sunk cost is a type of irrelevant cost.