Cryptocurrency Q&A
What do you mean by sunk cost?
What do you mean by sunk cost?
Tommaso
Mon Jan 06 2025
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6 answers
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I heard the term 'sunk cost' somewhere and I'm not sure what it means. Could you explain what a sunk cost is, and maybe provide some examples to help me understand it better?
6 answers
amelia_martinez_engineer
Tue Jan 07 2025
Take a manufacturing firm as an illustration.
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CryptoLordess
Tue Jan 07 2025
A sunk cost is a financial expenditure that has already been incurred and cannot be retrieved.
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mia_harrison_painter
Tue Jan 07 2025
This type of firm may encounter numerous sunk costs.
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InfinityEcho
Tue Jan 07 2025
It represents money that has been spent and is now considered irretrievable.
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Caterina
Tue Jan 07 2025
Among these, the cost of machinery and equipment stands out prominently. Additionally, the lease expense on the factory is also a significant sunk cost.
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