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.
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