Role of sunk cost in decision making
Nikhil Sharma (Student) (46 Points)
14 October 2013Nikhil Sharma (Student) (46 Points)
14 October 2013
CA Pallav Singhania
(❤ Work Hard Party Harder ❤)
(32532 Points)
Replied 14 October 2013
A sunk cost is a payment that can't be recovered; it's already been done and its not refundable. They're irrelevant in making decisions about future actions for that reason; whether you want to or not, you can't reverse that cost.
For example, when a car is purchased, it can subsequently be resold; however, it will probably not be resold for the original purchase price.
regards,
CA Rajat Bajaj
(Job)
(1042 Points)
Replied 14 October 2013