Difference between revisions of "Sunk costs"

Latest revision as of 21:56, December 13, 2020

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Revision as of 18:50, August 31, 2007 (view source) Aziraphale (talk \| contribs) (Category:Accounting Terms) ← Older edit		Latest revision as of 21:56, December 13, 2020 (view source) Quidam65 (talk \| contribs) (change to redirect page (consolidate with another article on same topic))
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−	~~'''~~Sunk cost''' is a term in [[accountancy]]. It refers to monies which have already been paid and are unrecoverable. It is an important principle of rational decision-making that sunk costs must be ignored in decision-making. For example, suppose $1 million has already been spent on a project that is being being considered for cancellation. 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.	+	#REDIRECT[[Sunk cost]]
−	~~[[Category:Accounting Terms~~]]