Formula for Sunk Cost?

Subtract the present realizable salvage value from the book value. The result is the sunk cost.

What is a sunk cost example?

A sunk cost refers to money that has already been spent and cannot be recovered. A manufacturing firm, for example, may have a number of sunk costs, such as the cost of machinery, equipment, and the lease expense on the factory.

What do the sunk cost include?

A sunk cost, sometimes called a retrospective cost, refers to an investment already incurred that can't be recovered. Examples of sunk costs in business include marketing, research, new software installation or equipment, salaries and benefits, or facilities expenses.