CIMA BA2 · Chapter 11 · Question 2 of 12
A company spent $15,000 last month on a market research survey for a possible new product. It is now deciding whether to launch the product. How should the $15,000 be treated in the decision?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Ignored, because it is a sunk cost
Explanation
The survey cost has already been incurred and will not change whatever decision is made. It is therefore a sunk cost and is irrelevant to the launch decision.
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