Pedro Arantes
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Sunk Cost

Sunk cost is a cost that has already occurred and cannot be recovered. In other words, a sunk cost is a sum paid in the past that is no longer relevant to decisions about the future.
#business
Zettelkasten, July 06, 2021
## Notes - Sunk cost is a cost that has already occurred and cannot be recovered. In other words, a sunk cost is a sum paid in the past that is no longer relevant to decisions about the future. - You, or a business, should not consider sunk costs when making decisions. - A business only considers the costs and revenues that will change as a result of its decisions. - It's also known as past cost, embedded cost, stranded cost, sunk capital, or retrospective cost. ## References - [CFI. Sunk Cost](https://corporatefinanceinstitute.com/resources/knowledge/economics/sunk-cost/) - [Wikipedia. Sunk cost](https://en.wikipedia.org/wiki/Sunk_cost) - [Alicia Tuovila. Sunk Cost](https://www.investopedia.com/terms/s/sunkcost.asp)
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