Relevant Costing and ignoring Sunk Costs

We’ve discussed how hard it is for human beings to ignore the money they have already spent “We can’t stop now after spending all this money!”, when in reality they should be looking at whether future expenditure brings sufficient benefits.

It is interesting to see an example where a major project is abandoned despite the spending of very large sums.

Here the example is the Garden Bridge.

https://www.theguardian.com/uk-news/2017/apr/28/garden-bridge-across-thames-scrapped-by-sadiq-khan-london

About Jonathan Rooks

Jonathan is an accountant who specialises in Management Accounting, the running of a business. He works with entrepreneurs to help them increase income and reduce costs.
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