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Sunk Costs

                  What is sunk cost? Under what circumstances are sunk costs relevant to a decision? Provide an example of a sunk cost. Briefly discuss why you think financial reports for investors and managerial reports for managers may or may not differ in their treatment of sunk costs.

 

Cost-Volume-Profit Analysis Model

                  Please describe the cost-volume-profit analysis model and discuss how it can be used.

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