ACCA PM · Chapter 8 · Question 5 of 10
A company spent $35,000 last month on market research into a possible new product. When deciding whether to launch the product, how should the $35,000 be treated?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Ignored, because it is a sunk cost
Explanation
The market research has already been paid for and will not change whatever decision is made. It is a sunk cost and is therefore irrelevant to the launch decision.
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