The relevance of costs is context sensitive sunk costs

Reference no: EM13567735

Colson-Howard Company operates a store in downtown Savannah that has five departments including a sporting goods department. If the sporting goods department is closed, the store manager will not be affected, but if the entire store is closed, the manager will be terminated. Which of the following lessons should be learned from this example? The relevance of costs is context sensitive. Sunk costs cannot be avoided. Opportunity costs are always present. Information does not have to be precisely accurate in order to be relevant.

Reference no: EM13567735

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