Sunk Cost

What does it Mean? A cost that has been incurred and cannot be reversed. Also referred to as "stranded cost."
Investopedia Says... A worn-out piece of equipment bought several years ago is a sunk cost because the cost of buying it cannot be reversed.


Terms Related Links

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

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