Sunk Cost

What Does Sunk Cost Mean?
A cost that has been incurred and cannot be reversed. Also referred to as "stranded cost."

Investopedia explains Sunk Cost
A worn-out piece of equipment bought several years ago is a sunk cost because the cost of buying it cannot be reversed.

Related Terms

Capacity Cost
Cost Of Goods Sold - COGS
Fixed Cost
Historical Cost
Irrelevant Cost
Relevant Cost
Variable Cost
More Related Terms

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