Fixed costs are not always sunk costs in business operations.
False. Not all fixed costs are considered sunk costs. A fixed cost is an expense that remains constant, regardless of the level of output, while a sunk cost is a cost that has already been incurred and cannot be recovered. While many fixed costs can be sunk costs, not all fixed costs fall into this category. It is essential for businesses to distinguish between fixed costs and sunk costs to make informed decisions about their operations and profitability.
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