Finance Management

Sunk Cost

Sunk Cost – Definition, Explanation, with Examples

Sunk cost (also understood as retrospective cost) in which an amount already incurred and can not be recovered. Sunk costs are independent of any event and should not be deemed when making investment or project decisions.

Direct Cost - Definition Explanation Examples

Direct Cost – Definition, Explanation, Examples

Direct cost is a type of cost associated with the production of specific goods or services. The cost of any material which directly used to produce a product/service can be considered a direct cost.