Sunk costs: Difference between revisions
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== See also == | == See also == | ||
* [[Contribution analysis]] | * [[Contribution analysis]] | ||
* [[Incremental cash flows]] | |||
* [[Opportunity cost]] | * [[Opportunity cost]] | ||
* [[Project appraisal]] | * [[Project appraisal]] | ||
Revision as of 11:22, 16 November 2020
Project appraisal.
Sunk costs are expenditure which has already taken place, or to which an organisation is already irrevocably committed.
Sunk costs are irrelevant to project appraisal: "Sunk costs don't count."
A common mistake in project appraisal and analysis is the inclusion - in error - of sunk costs in the analysis.
