Read the article and defend the position of the person making that decision
That theme is “the cost of doing business”.
Read the article and defend the position of the person making that decision
Use something about costs associated with business to answer it.
primarily fixed and variable costs. However, the most important cost to remember is the opportunity cost. Costs are not associated with activities instead they are associated with decisions. In the process of deciding to expand a business, the firm has to consider what it is giving up to do so. Firms ignore sunk costs, but must consider hidden costs.
https://www.nytimes.com/2014/
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Including Costs in Making Business Decisions
The primary reason for investment is always to make money, and in most cases, people focus too much on recovering the initial cost of investment in the short run at the expense of achieving the total benefits of investment in the long run. Consequently, some investors make decisions on the basis of sunken costs in the business, sometimes at the expense of ultimate success in the said investment (Irwin, 2014). The case is particularly clear in sports clubs where the fans and the management will always expect the maximum output from players who cost the club a lot, sometimes at the expense of the players’ health.
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