Sunk cost is irrelevant for short-term decision because

Sunk cost is irrelevant for short-term decision because

Sunk cost is irrelevant for short-term decision because:

A. It is future incremental cost

B. Already incurred and cannot be changed

C. Fully variable with production

D. Avoidable if reject project

Answer: B

Rationale: Sunk cost is past historical spending; no current decision can alter its amount, excluded from relevant cost calculation.