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A new payroll system is being developed at considerable cost. The new system had many flaws, not paying some employees and not properly calculating payroll
A new payroll system is being developed at considerable cost. The new system had many flaws, not paying some employees and not properly calculating payroll deductions for others. In response to criticisms that the system should be scrapped, a senior manager responded that it would be wasting money invested in the project to date. Is this approach correct or incorrect? Why? Select one: a. Incorrect. Only incremental costs influence the decision b. Incorrect. Sunk costs shouldn't affect this decision c. Correct. Externalities costs should affect the decision d. Incorrect. Financing costs shouldn't affect this decision e. Correct. Opportunity costs should affect this decision
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