Which of the following is true: a. Sunk costs are irrelevant to capital budgetin
ID: 2661830 • Letter: W
Question
Which of the following is true:a. Sunk costs are irrelevant to capital budgeting decisionmaking. b. Opportunity costs are relevant to capital budgetingdecision making. c. Overhead costs that previously existed within the firm, buthave been reallocated to a new project, are not relevant whenanalyzing that new project. d. All of the above. Which of the following is true:
a. Sunk costs are irrelevant to capital budgeting decisionmaking. b. Opportunity costs are relevant to capital budgetingdecision making. c. Overhead costs that previously existed within the firm, buthave been reallocated to a new project, are not relevant whenanalyzing that new project. d. All of the above.
Explanation / Answer
Answer:d. All of the above.