Ad
related to: sunk cost explained in detail pdf worksheet images free
Search results
Results From The WOW.Com Content Network
In economics and business decision-making, a sunk cost (also known as retrospective cost) is a cost that has already been incurred and cannot be recovered. [ 1 ] [ 2 ] Sunk costs are contrasted with prospective costs , which are future costs that may be avoided if action is taken. [ 3 ]
Of these, sunk costs, time investment, decision maker experience and expertise, self-efficacy and confidence, personal responsibility for the initial decision, ego threat, and proximity to project completion have been found to have positive relationships with escalation of commitment, while anticipated regret and positive information framing ...
When some costs are sunk and some are not sunk, total fixed costs (TFC) equal sunk fixed costs (SFC) plus non-sunk fixed costs (NSFC) or TFC = SFC + NSFC. When some fixed costs are non-sunk, the shutdown rule must be modified. To illustrate the new rule it is necessary to define a new cost curve, the average non-sunk cost curve, or ANSC.
For premium support please call: 800-290-4726 more ways to reach us
The "psychology of previous investment" was coined by James Howard Kunstler [1] to describe the sunk costs of the modern urban/suburban lifestyle.It is the reluctance to abandon technologies and standards of urban infrastructure into which humans have already made substantial investments, and is seen as a major contributor to modern energy crises.
Sunk cost From a page move : This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
Building on canonical work by James Fearon, there are two prominent signaling mechanisms in the rational choice literature: sinking costs and tying hands. [12] [13] The former refers to signals that involve sunk irrecoverable costs, whereas the latter refers to signals that will incur costs in the future if the signaler reneges. [14]
An important part of standard cost accounting is a variance analysis, which breaks down the variation between actual cost and standard costs into various components (volume variation, material cost variation, labor cost variation, etc.) so managers can understand why costs were different from what was planned and take appropriate action to ...