What does sunk costs mean?

Definitions for sunk costs
sunk costs

Here are all the possible meanings and translations of the word sunk costs.


Did you actually mean synecdoche or shamanistic?

Freebase

  1. 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. Note, 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 spent. A "fixed" cost would be monthly payments made as part of a service contract or licensing deal with the company that set up the software. The upfront irretrievable payment for the installation should not be deemed a "fixed" cost, with its cost spread out over time. Sunk costs should be kept separate. The "variable costs" for this project might include data centre power usage, etc. In traditional microeconomic theory, only prospective costs are relevant to an investment decision. Traditional economics proposes that economic actors should not let sunk costs influence their decisions. Doing so would not be rationally assessing a decision exclusively on its own merits. Alternatively, a decision-maker might make rational decisions according to their own incentives, outside of efficiency or profitability. This is considered to be an incentive problem and is distinct from a sunk cost problem.

How to pronounce sunk costs?

  1. Alex
    US English
    Daniel
    British
    Karen
    Australian
    Veena
    Indian

How to say sunk costs in sign language?

Numerology

  1. Chaldean Numerology

    The numerical value of sunk costs in Chaldean Numerology is: 9

  2. Pythagorean Numerology

    The numerical value of sunk costs in Pythagorean Numerology is: 6

Images & Illustrations of sunk costs

  1. sunk costssunk costssunk costssunk costssunk costs


Translations for sunk costs

From our Multilingual Translation Dictionary

  • التكاليف الثابتةArabic

Get even more translations for sunk costs »

Translation

Find a translation for the sunk costs definition in other languages:

Select another language:

  • - Select -
  • 简体中文 (Chinese - Simplified)
  • 繁體中文 (Chinese - Traditional)
  • Español (Spanish)
  • Esperanto (Esperanto)
  • 日本語 (Japanese)
  • Português (Portuguese)
  • Deutsch (German)
  • العربية (Arabic)
  • Français (French)
  • Русский (Russian)
  • ಕನ್ನಡ (Kannada)
  • 한국어 (Korean)
  • עברית (Hebrew)
  • Gaeilge (Irish)
  • Українська (Ukrainian)
  • اردو (Urdu)
  • Magyar (Hungarian)
  • मानक हिन्दी (Hindi)
  • Indonesia (Indonesian)
  • Italiano (Italian)
  • தமிழ் (Tamil)
  • Türkçe (Turkish)
  • తెలుగు (Telugu)
  • ภาษาไทย (Thai)
  • Tiếng Việt (Vietnamese)
  • Čeština (Czech)
  • Polski (Polish)
  • Bahasa Indonesia (Indonesian)
  • Românește (Romanian)
  • Nederlands (Dutch)
  • Ελληνικά (Greek)
  • Latinum (Latin)
  • Svenska (Swedish)
  • Dansk (Danish)
  • Suomi (Finnish)
  • فارسی (Persian)
  • ייִדיש (Yiddish)
  • հայերեն (Armenian)
  • Norsk (Norwegian)
  • English (English)

Word of the Day

Would you like us to send you a FREE new word definition delivered to your inbox daily?

Please enter your email address:


Discuss these sunk costs definitions with the community:

0 Comments

    Citation

    Use the citation below to add this definition to your bibliography:

    Style:MLAChicagoAPA

    "sunk costs." Definitions.net. STANDS4 LLC, 2021. Web. 28 Jul 2021. <https://www.definitions.net/definition/sunk+costs>.

    Are we missing a good definition for sunk costs? Don't keep it to yourself...

    Browse Definitions.net

    Free, no signup required:

    Add to Chrome

    Get instant definitions for any word that hits you anywhere on the web!

    Free, no signup required:

    Add to Firefox

    Get instant definitions for any word that hits you anywhere on the web!

    Quiz

    Are you a words master?

    »
    soft creamy candy
    • A. condemn
    • B. fudge
    • C. interrogate
    • D. aggravate

    Nearby & related entries:

    Alternative searches for sunk costs: