Question
A sunk cost is an example of a relevant incremental cash flow.
True false question.
True
False
True false question.
True
False
Answers
GPT-4o mini
False
A sunk cost refers to money that has already been spent and cannot be recovered. Since it does not change regardless of future decisions or cash flows, it is not considered a relevant incremental cash flow when making decisions. Relevant incremental cash flows are those that will change as a result of a decision.
A sunk cost refers to money that has already been spent and cannot be recovered. Since it does not change regardless of future decisions or cash flows, it is not considered a relevant incremental cash flow when making decisions. Relevant incremental cash flows are those that will change as a result of a decision.