Sunk costs could lead to bad business decisions
February 25, 2016
Do you think pulling the plug on a failed contract would be “wasting all the money” your business has spent to date? If so, you may be making the choice based on emotion and “sunk costs.” Sunk costs are past expenses that are irrelevant to current decisions – such as those spent on non-performing contracts. Why are they irrelevant? Because...
Tags: sunk costs