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  2. Sunk cost - Wikipedia

    en.wikipedia.org/wiki/Sunk_cost

    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 ]

  3. Shutdown (economics) - Wikipedia

    en.wikipedia.org/wiki/Shutdown_(economics)

    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.

  4. Break-even point - Wikipedia

    en.wikipedia.org/wiki/Break-even_point

    The total cost, total revenue, and fixed cost curves can each be constructed with simple formula. For example, the total revenue curve is simply the product of selling price times quantity for each output quantity. The data used in these formula come either from accounting records or from various estimation techniques such as regression analysis.

  5. What Is Sunk Cost? - AOL

    www.aol.com/news/2013-04-03-sunk-cost-definition...

    Alamy There are some economic terms most of us know and understand, such as supply and demand. And there are other terms we will probably never even run across, like implicit logrolling and a ...

  6. Managerial economics - Wikipedia

    en.wikipedia.org/wiki/Managerial_economics

    The most common types of costs that are factored into this decision include: [89] Fixed costs; Variable costs; Marginal cost; Average total cost; Sunk costs; The impact of short-run and long run costs are important in determining production in a certain firm . It is assumed some costs are fixed in the short-run and are thus considered "fixed ...

  7. Relevant cost - Wikipedia

    en.wikipedia.org/wiki/Relevant_cost

    It is often important for businesses to distinguish between relevant and irrelevant costs when analyzing alternatives because erroneously considering irrelevant costs can lead to unsound business decisions. [1] Also, ignoring irrelevant data in analysis can save time and effort. Types of irrelevant costs are: [3] Sunk costs [4] Committed costs

  8. Theory of the firm - Wikipedia

    en.wikipedia.org/wiki/Theory_of_the_firm

    This grows worse with firm size and more layers in the hierarchy. Empirical analyses of transaction costs have attempted to measure and operationalize transaction costs. [5] [27] Research that attempts to measure transaction costs is the most critical limit to efforts to potential falsification and validation of transaction cost economics.

  9. Opportunity cost - Wikipedia

    en.wikipedia.org/wiki/Opportunity_cost

    From the traceability source of costs, sunk costs can be direct costs or indirect costs. If the sunk cost can be summarized as a single component, it is a direct cost; if it is caused by several products or departments, it is an indirect cost. Analyzing from the composition of costs, sunk costs can be either fixed costs or variable costs.