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In economics and business decision-making, a sunk cost (also known as retrospective cost) is a cost that has already been incurred and cannot be recovered. Sunk costs are contrasted with prospective costs, which are future costs that may be avoided if action is taken.
Feb 13, 2024 · A sunk cost is an expenditure that has already been incurred and cannot be recovered. These types of costs should be excluded from decision-making.
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A sunk cost is a cost that has already occurred and cannot be recovered by any means. Sunk costs are independent of any event and should not be considered when making investment or project decisions.
Mar 6, 2024 · Understanding sunk costs and how to handle them effectively is an essential skill for any product manager. By recognizing these costs and avoiding the sunk cost fallacy, you can make more rational, value-driven decisions for your products. Remember, when it comes to sunk costs, the money is already spent.
Apr 18, 2022 · What Is a Sunk Cost—and the Sunk Cost Fallacy? A sunk cost is an expenditure that has already been incurred and cannot be recovered. These types of costs should be excluded from...
- Geoffrey Michael
A sunk cost is a cost that has already been incurred and cannot be recovered. Sunk costs are different from incremental costs, which are costs that will be incurred as a result of a particular decision. In business, sunk costs are often relevant when deciding whether to continue investing in a project or abandon it.
In business speak, a sunk cost is a payment or investment that has already been made. It can't be recovered and therefore shouldn't be a factor in decisions moving forward because no matter what, it can't be recouped.
