Sunk costs: Difference between revisions
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imported>Doug Williamson (Link with Contribution analysis page.) |
imported>Doug Williamson (Add link.) |
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* [[Contribution analysis]] | * [[Contribution analysis]] | ||
* [[Project appraisal]] | * [[Project appraisal]] | ||
* [[Sunk cost fallacy]] | |||
[[Category:Corporate_finance]] | [[Category:Corporate_finance]] | ||
Revision as of 10:30, 27 March 2020
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.
