Business, Legal & Accounting Glossary
Money that has already been spent and cannot be recovered.
Money already spent and gone, which will not be recovered no matter what course of action is taken. Bad decisions are made when managers attempt to recoup sunk costs.
The cost of their time is a sunk cost.
Economists refer to this as a sunk cost.
The original cost is historical and can therefore be considered to be an irrelevant sunk cost.
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This glossary post was last updated: 25th March, 2020 | 1 Views.