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Sunk costs are unavoidable costs usually in the form of fixed costs.
Sunk cost is a term in [[accountancy]]. It refers to monies which have already been paid and are unrecoverable. It is an important principle that sunk costs must ignored in decision-making. For example, suppose $1 millions has already been spent on a project. If the project is stopped or abandoned that money will have been wasted. However, that fact should ''not'' be considered when deciding whether or not to stop the project, as that money is already gone.