In deciding whether to sell a product or continue to process it, the costs incurred to get the product into its current condition are not relevant to the decision.
This refers to the price at which a good was bought and might include the expenses incurred while procuring the goods.
Hence, we can see that when an owner is trying to decide whether to sell a good or process it, the costs incurred to get the product to its current condition are not relevant while making this decision.
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