When planning a trip and deciding whether to drive or fly, the the original cost of the car is a sunk cost and should be ignored.
An irrelevant cost is a cost that does not change in the future if you make a decision. Examples of irrelevant costs include thunk his costs, committed costs, and overhead costs. Because they are unavoidable. There is no right answer for every business, and it often changes depending on the situation. Opportunity cost represents the potential profit missed by an individual, investor, or firm by choosing another alternative. Opportunity costs are by definition invisible and are often overlooked. The associated costs are the costs that differ between the alternatives. Avoidable costs are costs that can be eliminated in whole or in part by choosing an alternative. Avoidable costs are associated costs.
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