Sunk Costs and Opportunity Costs Are Inherent in Decision Making

Essay

Sunk costs and opportunity costs are inherent in decision making.
Required:
A. Define the terms "sunk cost" and "opportunity cost."
B. How are sunk costs treated when making decisions?
C. "Information about sunk costs can be found in the financial statements and accounting records; however, information about opportunity costs is omitted." Do you agree with this statement? Explain.