Sunk costs: Difference between revisions
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imported>Doug Williamson m (Spacing 20/8/13) |
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''Project appraisal''. | ''Project appraisal''. | ||
Expenditure which has already taken place, or to which an organisation is already irrevocably committed, are sunk costs. | Expenditure which has already taken place, or to which an organisation is already irrevocably committed, are sunk costs. | ||
Sunk costs are irrelevant to project appraisal: "Sunk costs don't count." | 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. | A common mistake in project appraisal and analysis is the inclusion - in error - of sunk costs in the analysis. | ||
== See also == | == See also == | ||
* [[Project appraisal]] | * [[Project appraisal]] | ||
Revision as of 08:18, 20 August 2013
Project appraisal.
Expenditure which has already taken place, or to which an organisation is already irrevocably committed, are sunk costs.
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.
