Question: Including irrelevant costs can: 1 . Overestimate Costs: By adding things like fixed or sunk costs, you might make the purchase seem too expensive. 2

Including irrelevant costs can:
1. Overestimate Costs: By adding things like fixed or sunk costs, you might make the purchase seem too expensive.
2. Reduce Future Profits: You might pass up good opportunities because your cost estimates are too high.
3. Lead to Bad Decisions: You could make less efficient choices, increasing future expenses.
Focusing only on relevant costs helps companies make better decisions and improve future profitability.

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