A cost that has already been incurred and cannot be recovered in the future is known as a sunk cost
Definition
Rent, marketing campaign expenditures, and money invested on new equipment are a few examples of buried costs.
Examples
Example 1:
You opt to see the movie even though you should be at your appointment because you don't want your ticket or money to be wasted.
Example 2:
You recently bought a home and intend to make some improvements. One of these improvements entails putting up hardwood flooring. You decide you don't like how your kitchen turned out after installing hardwood floors there. This situation is an example of a sunk cost problem since you are torn between continuing to build hardwood flooring after having already paid for them.
Jobs that use cost sunk
