ECONOMICS

Detailed explanation-1: -Information gathering, evaluating the future consequences of present actions, determining alternative solutions are all crucial parts of decision making skills.

Detailed explanation-2: -1. Sunk costs (past costs) or committed costs are not relevant. Sunk, or past, costs are monies already spent or money that is already contracted to be spent. A decision on whether or not a new endeavour is started will have no effect on this cash flow, so sunk costs cannot be relevant.

Detailed explanation-3: -variable costs. Variable costs are relevant for decision making as they change when a decision is made.

Detailed explanation-4: -Since sunk costs do not differ between the alternatives and do not affect present or future conditions they are not relevant for decision making purposes.