Difference between revisions of "Sunk costs"

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== See also ==
 
== See also ==
 
* [[Contribution analysis]]
 
* [[Contribution analysis]]
 +
* [[Fixed cost]]
 
* [[Incremental cash flows]]
 
* [[Incremental cash flows]]
 
* [[Opportunity cost]]
 
* [[Opportunity cost]]

Revision as of 16:44, 10 August 2021

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.


See also