SUNKCOSTS
Sunk costs
In economics and business decision-making, a sunk cost is a retrospective cost that has already been incurred and cannot be recovered. Sunk costs are sometimes contrasted with prospective costs, which are future costs that may be incurred or changed if an action is taken. Both retrospective and prospective costs may be either fixed or variable costs. Sherman notes, however, that many economists consider it a mistake to classify sunk costs as "fixed" or "variable." For example, if a firm sinks $1 million on an enterprise software installation, that cost is "sunk" because it was a one-time expense and cannot be recovered once ...The above text is a snippet from Wikipedia: Sunk costs
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