sunken cost

[/ˈsʌŋkən kɔst/]
nounpl: sunken costs
custo irrecuperável
1. A cost that has already been incurred and cannot be recovered, regardless of future decisions or outcomes
The money already spent on the failed project is a sunken cost and should not influence future investment decisions.
O dinheiro já gasto no projeto fracassado é um custo irrecuperável e não deve influenciar as decisões de investimento futuro.
2. In economics and business, an expense that cannot be reclaimed and should not affect current or future decision-making
Ignoring sunken costs is essential for making rational business decisions.
Ignorar custos irrecuperáveis é essencial para tomar decisões comerciais racionais.
The concept of 'sunken cost' is fundamental in American and Brazilian business schools, often taught through the 'sunk cost fallacy' - the cognitive bias where people continue investing in something because of previously invested resources. In both cultures, understanding this concept is crucial for rational financial decision-making in corporate and personal finance contexts.
Synonyms / Sinônimos
sunk costirrecoverable costpast costunrecoverable expense
Antonyms / Antônimos
variable costrecoverable costopportunity cost

Regional Variations

General Brazilian
custo irrecuperável
Most common translation in Brazilian business and economics contexts
General Brazilian
custo incorrido
Alternative used in some financial contexts
Portugal
custo irrecuperável
Standard term in European Portuguese business language
Portugal
custo perdido
Less formal but commonly understood in Portugal

Related Words

opportunity costfixed costvariable costcapital expenditurecost-benefit analysis

Related Idioms & Phrases

don't throw good money after bad
sunk cost fallacy
throwing money down the drain
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