What’s sunk cost anyway?
Sunk cost is the cost the has been put in motioned which cannot be recovered. For example, in practice this can mean money that’s has been used to purchase machinery in a manufacturing line or past effort and time that has been put towards a goal.
What’s sunk cost fallacy
The sunk cost fallacy is a mindset when working through a decision. This fallacy is based on the premise that committing to the current plan is justified because resources have already been committed. This mistake may result in improper long-term strategic planning decisions based on short-term committed costs. In addition this cloud our ability to form new ideas from fresh perspective.