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sunk costs

 

Definitions from the Web

Sunk Costs

Description:

Sunk costs refer to expenses or investments that have already been incurred and cannot be recovered, regardless of future actions or decisions. These costs are no longer relevant in determining the feasibility or profitability of a project.

Sample Sentences:

  • Despite realizing the project was failing, they continued investing money in it due to the influence of sunk costs.
  • It's important to make decisions based on future implications rather than dwelling on sunk costs.
  • Managers should analyze the potential returns instead of being influenced by sunk costs while evaluating a new business venture.

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