- 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.
- [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)