Sunk cost

From Conservapedia
This is an old revision of this page, as edited by Aschlafly (talk | contribs) at 18:11, June 28, 2020. It may differ significantly from current revision.
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigation Jump to search

A sunk cost is money already expended without ability to retrieve the funds.

A sunk cost is different from ongoing and future expenses by a business. Sunk costs should be excluded from future decision-making because the cost was incurred and cannot change regardless of future revenue and expenses.

Sunk costs are not relevant costs, which are costs not yet incurred.

Simply put, sunk costs are unrecoverable, so forget about them and make decisions based on future revenue and expenses.