{"id":999971534,"date":"2025-03-28T18:18:16","date_gmt":"2025-03-28T11:18:16","guid":{"rendered":"https:\/\/bizzi.vn\/?p=999971534"},"modified":"2026-06-09T13:48:13","modified_gmt":"2026-06-09T06:48:13","slug":"what-is-bird-cost","status":"publish","type":"post","link":"https:\/\/bizzi.vn\/en\/what-is-bird-cost\/","title":{"rendered":"What is a sunk cost? 4 tips to avoid the sunk cost trap"},"content":{"rendered":"<p class=\"\" data-start=\"702\" data-end=\"1150\"><strong data-start=\"702\" data-end=\"725\">What is a sunk cost?<\/strong> This is a common psychological trap that businesses can easily fall into, leading to wrong decisions and wasted resources. Once money has been invested in a project, continuing to invest just because of regretting the money spent, even though the project is not feasible, is a consequence of <strong data-start=\"959\" data-end=\"975\">sunk cost<\/strong>.<\/p>\n<p class=\"\" data-start=\"702\" data-end=\"1150\">The following article by <strong><a href=\"https:\/\/bizzi.vn\/\">Bizzi<\/a> <\/strong>will help you understand more about <strong data-start=\"1028\" data-end=\"1044\">sunk cost<\/strong>, how to recognize it, its impact and <strong data-start=\"1081\" data-end=\"1108\">how to deal with sunk costs<\/strong> effective in business decisions.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/bizzi.vn\/en\/what-is-bird-cost\/#Chi_phi_chim_la_gi\" >What is a sunk cost?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/bizzi.vn\/en\/what-is-bird-cost\/#Dac_diem_cua_chi_phi_chim\" >Characteristics of sunk costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/bizzi.vn\/en\/what-is-bird-cost\/#Vi_du_ve_chi_phi_chim\" >Examples of sunk costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/bizzi.vn\/en\/what-is-bird-cost\/#Su_khac_biet_giua_chi_phi_co_hoi_va_chi_phi_chim_la_gi\" >What is the difference between opportunity cost and sunk cost?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/bizzi.vn\/en\/what-is-bird-cost\/#Bay_chi_phi_chim_Sunk_Cost_Fallacy\" >Sunk Cost Fallacy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/bizzi.vn\/en\/what-is-bird-cost\/#Chi_phi_chim_anh_huong_the_nao_den_quyet_dinh_kinh_doanh\" >How do sunk costs affect business decisions?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/bizzi.vn\/en\/what-is-bird-cost\/#Cach_de_tranh_bay_chi_phi_chim_hieu_qua\" >How to avoid sunk cost trap effectively<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/bizzi.vn\/en\/what-is-bird-cost\/#Nhan_dien_va_danh_gia\" >Identification and assessment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/bizzi.vn\/en\/what-is-bird-cost\/#Dua_ra_quyet_dinh_dua_tren_loi_ich_tuong_lai\" >Make decisions based on future benefits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/bizzi.vn\/en\/what-is-bird-cost\/#Su_dung_du_lieu_va_phan_tich\" >Using data and analytics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/bizzi.vn\/en\/what-is-bird-cost\/#Thiet_lap_nguyen_tac_tai_chinh_ro_rang\" >Establish clear financial principles<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/bizzi.vn\/en\/what-is-bird-cost\/#Tong_ket\" >Summary<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Chi_phi_chim_la_gi\"><\/span>What is a sunk cost?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<blockquote>\n<p class=\"\" data-start=\"148\" data-end=\"588\"><strong>Sunk Cost<\/strong> is the expense <strong>incurred in the past and irrecoverable<\/strong>, whether the business continues or stops that project or activity. This is a cost <strong>no longer influences future decisions<\/strong>, but again <strong>psychologically impactful<\/strong> managers, causing them to regret and make wrong decisions to &quot;recover&quot; the lost money. Sunk costs often <strong>appears when investment fails or decision goes wrong<\/strong>.<\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400;\">In short, sunk costs are independent of future factors.<\/span><\/p>\n<p><strong>Examples of sunk costs:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A company invests 500 million to develop a software but then realizes that the product is not suitable for the market. This 500 million is <\/span><b>sunk cost<\/b><span style=\"font-weight: 400;\"> Because whether or not the business continues to grow, it cannot recover the money it has spent.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Buying production machinery but after a while realizing it is ineffective. The cost of buying this machinery is also a sunk cost.<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_999971540\" aria-describedby=\"caption-attachment-999971540\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-999971540\" title=\"Understand the definition of sunk costs to know how to handle them effectively\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/chi-phi-chim-la-gi.png\" alt=\"Understand the definition of sunk costs to know how to handle them effectively\" width=\"1200\" height=\"799\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/chi-phi-chim-la-gi.png 1300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/chi-phi-chim-la-gi-300x200.png 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/chi-phi-chim-la-gi-1024x682.png 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/chi-phi-chim-la-gi-768x512.png 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/chi-phi-chim-la-gi-18x12.png 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999971540\" class=\"wp-caption-text\">Understand the definition of sunk costs to know how to handle them effectively<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Dac_diem_cua_chi_phi_chim\"><\/span>Characteristics of sunk costs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Irrevocable: Once <strong>costs incurred<\/strong>, there is no way to get that money back.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">No impact on future decisions: Theoretically, these costs should not be taken into account when making investment or business decisions because they cannot be changed.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Often overlooked in calculations<\/strong>, economic analysis: In cost-benefit analyses, sunk costs are often not considered because they do not affect future cash flows, and also <strong>cannot be compensated by future profits.<\/strong><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Often viewed as a type of <strong>fixed cost<\/strong>: Because this cost does not change regardless of what decisions the business makes. However, not all fixed costs are sunk costs.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Uncontrollable or unpredictable.<\/li>\n<li>Any expense can become a sunk cost if it does not yield the expected results.<\/li>\n<li data-start=\"1441\" data-end=\"1576\"><strong data-start=\"1441\" data-end=\"1475\">Regarding hidden costs:<\/strong> Sometimes, there are also hidden, unclear sunk costs behind investments or indirect costs.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Vi_du_ve_chi_phi_chim\"><\/span>Examples of sunk costs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Non-Returnable\/Non-Refundable Purchases:<\/b><span style=\"font-weight: 400;\"> Money paid for shoes that are not satisfactory and cannot be returned or refunded.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Market research costs for unfeasible projects:<\/b><span style=\"font-weight: 400;\"> Money spent on market research for a new product that is not produced due to low market demand.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost of unsuccessful product development:<\/b><span style=\"font-weight: 400;\"> Money invested in research, development and production of a new product but the market does not accept it.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost of building or purchasing unused assets:<\/b><span style=\"font-weight: 400;\"> Costs paid for buildings, machinery, or technology that are no longer used or sold.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost of training employees who quit or are ineffective:<\/b><span style=\"font-weight: 400;\"> Money is invested in training employees but they leave the company or are not productive.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Costs of unsuccessful advertising:<\/b><span style=\"font-weight: 400;\"> Money spent on marketing campaigns did not achieve expected results.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Money to buy followers on TikTok does not guarantee orders:<\/b><span style=\"font-weight: 400;\"> The cost of buying followers to qualify for livestreams but does not generate sales.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost of unsold inventory:<\/b><span style=\"font-weight: 400;\"> Money spent on importing products that are not popular with customers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost of ineffective website design:<\/b><span style=\"font-weight: 400;\"> Invested in website design but did not attract customers and increase sales as expected.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Su_khac_biet_giua_chi_phi_co_hoi_va_chi_phi_chim_la_gi\"><\/span>What is the difference between opportunity cost and sunk cost?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>\u2013 Nature:<\/b><\/p>\n<ul>\n<li><b>Sunk costs:<\/b><span style=\"font-weight: 400;\"> Cost has been <strong>arise in the past<\/strong> or a payment obligation has arisen and is committed to be performed. Should not be taken into account in the current assessment or decision.<\/span><\/li>\n<li><b>Opportunity cost:<\/b><span style=\"font-weight: 400;\"> Future costs. Are the benefits foregone when choosing an alternative. Are the value of the best opportunity missed when making a decision.<\/span><\/li>\n<\/ul>\n<p><b>\u2013 Measurement:<\/b><\/p>\n<ul>\n<li><b>Sunk costs:<\/b><span style=\"font-weight: 400;\"> Measurable in money with certainty.<\/span><\/li>\n<li><b>Opportunity cost:<\/b><span style=\"font-weight: 400;\"> An estimated, relative value that may include non-monetary values. Often difficult to quantify precisely, and is based primarily on estimates and assessments of the potential of different options.<\/span><\/li>\n<\/ul>\n<p><b>- Present:<\/b><\/p>\n<ul>\n<li><b>Sunk costs:<\/b><span style=\"font-weight: 400;\"> Expressed by numbers recorded according to accounting principles on the <strong>report <a href=\"https:\/\/bizzi.vn\/tu-dong-hoa-ke-toan-tai-chinh\/\">corporate financial accounting<\/a><\/strong>.<\/span><\/li>\n<li><b>Opportunity cost:<\/b><span style=\"font-weight: 400;\"> Not shown on the Financial Statements, but may be shown on some management reports.<\/span><\/li>\n<\/ul>\n<p><b>\u2013 Role in decision making:<\/b><\/p>\n<ul>\n<li><b>Sunk costs:<\/b><span style=\"font-weight: 400;\"> Should not be considered when choosing between options for decision making.<\/span><\/li>\n<li><b>Opportunity cost:<\/b><span style=\"font-weight: 400;\"> Should be fully considered in weighing up alternatives for decision making. Represents the benefits foregone when choosing an alternative, and is therefore a factor to be considered in the decision making process.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Bay_chi_phi_chim_Sunk_Cost_Fallacy\"><\/span>Sunk Cost Fallacy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The sunk cost trap is a phenomenon where an individual or business continues to invest in a project or decision just because it has already incurred a large amount of costs, even though continuing to invest may not bring benefits or even cause further losses. Here are some common causes of this mistake:<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>Loss Aversion Bias:<\/b><span style=\"font-weight: 400;\"> Regret about the material and time invested in the old plan, so tend to persevere.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Expected benefits:<\/b><span style=\"font-weight: 400;\"> Maintain investment due to belief in the future benefits of the project and to prove the initial decision was correct.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Never give up or \u201cgo all in\u201d mentality (Commitment Bias):<\/b><span style=\"font-weight: 400;\"> Once committed to a decision, people tend to <\/span><b>don&#039;t want to change<\/b><span style=\"font-weight: 400;\"> even though they know it&#039;s wrong. They believe that if they just try a little harder, things will change.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Herd Mentality: <\/b><span style=\"font-weight: 400;\">Believe in perseverance and you will reap success.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Pressure of reputation and personal pride: <\/b><span style=\"font-weight: 400;\">Unwilling to admit failure: Difficulty in giving up the costs already spent; Fear of losing face or receiving criticism: If giving up a project in which a lot has been invested.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Failure to periodically review performance and lack of awareness of sunk costs:<\/b><span style=\"font-weight: 400;\"> Continue investing on inertia without any other backup plan.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Chi_phi_chim_anh_huong_the_nao_den_quyet_dinh_kinh_doanh\"><\/span>How do sunk costs affect business decisions?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>\u2013 It is easy to make mistakes in decision making due to continuing to invest in ineffective projects:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Businesses often tend to <\/span><b>\u201csunk cost effect\u201d<\/b><span style=\"font-weight: 400;\"> (<\/span><i><span style=\"font-weight: 400;\">Sunk Cost Fallacy<\/span><\/i><span style=\"font-weight: 400;\">), which means continuing to invest in a project or product even though it is no longer effective, simply because too much money was spent on it before.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example: A company invested billions of dollars in a project but the market did not accept it. Instead of stopping to reduce losses, they continued to invest in the hope of <\/span><b>&quot;recover&quot;<\/b><span style=\"font-weight: 400;\">, resulting in heavier losses.<\/span><\/p>\n<p><b>\u2013 Impact on business strategy<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">If not clearly identified<strong> What is a sunk cost?<\/strong>, businesses can maintain ineffective projects.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">May miss out on new and more potential business opportunities<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Decisions affected by sunk costs are often suboptimal.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For example, a phone manufacturer invested heavily in a failed product line but continued to produce it instead of focusing on developing new phone models according to market trends.<\/span><\/p>\n<p><b>\u2013 Misalignment of budget allocation<\/b><\/p>\n<ul>\n<li>Businesses can end up \u201cthrowing money into the fire\u201d instead of investing in more potential projects.<\/li>\n<li>The correct approach is to look at future costs rather than what was lost in the past.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Leading to capital deficit and serious waste of resources:<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Waste of resources: Continuing to spend capital, human resources and time on projects that have no prospects.<\/li>\n<\/ul>\n<figure id=\"attachment_999971541\" aria-describedby=\"caption-attachment-999971541\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999971541\" title=\"Businesses should consider future costs rather than what was lost in the past.\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/Tac-dong-cua-chi-phi-chim-den-kinh-doanh-nhu-the-nao.jpg\" alt=\"Businesses should consider future costs rather than what was lost in the past.\" width=\"1200\" height=\"545\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/Tac-dong-cua-chi-phi-chim-den-kinh-doanh-nhu-the-nao.jpg 1600w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/Tac-dong-cua-chi-phi-chim-den-kinh-doanh-nhu-the-nao-300x136.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/Tac-dong-cua-chi-phi-chim-den-kinh-doanh-nhu-the-nao-1024x465.jpg 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/Tac-dong-cua-chi-phi-chim-den-kinh-doanh-nhu-the-nao-768x348.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/Tac-dong-cua-chi-phi-chim-den-kinh-doanh-nhu-the-nao-1536x697.jpg 1536w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/Tac-dong-cua-chi-phi-chim-den-kinh-doanh-nhu-the-nao-18x8.jpg 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999971541\" class=\"wp-caption-text\">Businesses should consider future costs rather than what was lost in the past.<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Cach_de_tranh_bay_chi_phi_chim_hieu_qua\"><\/span>How to avoid sunk cost trap effectively<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Nhan_dien_va_danh_gia\"><\/span>Identification and assessment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Be clear about sunk costs: <\/b><span style=\"font-weight: 400;\">Understand the concept <strong>What is a sunk cost?<\/strong> and recognize that costs that have already occurred cannot be changed. Always distinguish between sunk costs (which are lost and cannot be changed) and costs that may influence future decisions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Understanding sunk costs<\/b><span style=\"font-weight: 400;\">: Clearly identify which expenses have been incurred and <strong>irrevocable<\/strong>, to avoid being influenced when making decisions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Separating the past and the future<\/b><span style=\"font-weight: 400;\">: Ask questions: <\/span><i><span style=\"font-weight: 400;\">\u201cIf I hadn&#039;t invested this money, would I have continued with the project?\u201d<\/span><\/i><span style=\"font-weight: 400;\"> If the answer is <\/span><b>Are not<\/b><span style=\"font-weight: 400;\">, then consider stopping.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Project review:<\/b><span style=\"font-weight: 400;\"> Use analytical tools to re-evaluate projects based on future benefits and costs, not past ones.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Dua_ra_quyet_dinh_dua_tren_loi_ich_tuong_lai\"><\/span>Make decisions based on future benefits<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Looking to the future:<\/b><span style=\"font-weight: 400;\"> Make decisions based on future potential and benefits rather than on past costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Consider alternative options:<\/b><span style=\"font-weight: 400;\"> Consider potentially better options if a project is no longer viable.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Su_dung_du_lieu_va_phan_tich\"><\/span>Using data and analytics<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Evaluate projects based on financial, market, ROI metrics instead of emotions.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Build an objective scorecard to analyze investment performance.<\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Reevaluate the costs and benefits of a project to decide whether to continue investing.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Make decisions based on current information: Don&#039;t rely on the past, evaluate based on the actual situation to make the best decision for the future.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Plan for multiple scenarios: Prepare backup plans to be flexible when the initial plan goes awry.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Monitor the results of your advertising campaign or sales plan closely: To be able to consider timely changes. Use software <strong><a href=\"https:\/\/bizzi.vn\/tich-hop-erp\/\">overall business management<\/a><\/strong> to track business performance.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Analyze market characteristics and target customers carefully: To make appropriate business decisions and avoid wasting resources.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Thiet_lap_nguyen_tac_tai_chinh_ro_rang\"><\/span>Establish clear financial principles<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Determine maximum loss<\/b><span style=\"font-weight: 400;\"> before starting a project to avoid getting caught in the \u201ccontinuation investment trap\u201d.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Periodic review<\/b><span style=\"font-weight: 400;\">: Set the performance test time to decide whether to continue or not.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Set clear limits on acceptable losses for each plan:<\/b><span style=\"font-weight: 400;\"> If a project is no longer effective, be brave enough to abandon it instead of continuing to pour money into it in the hope of &quot;recovering capital&quot;.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Focus on ROI (Return on Investment)<\/b><span style=\"font-weight: 400;\">: Only continue investing if the project has <\/span><b>good return on investment<\/b><span style=\"font-weight: 400;\"> in the future, rather than being influenced by the amount spent in the past.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Tong_ket\"><\/span>Summary<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Here is all the information about <strong>What is a sunk cost?<\/strong> as well as optimization, sunk cost assessment to come up with appropriate strategies. In general, sunk cost trap is one of the common but dangerous mistakes of businesses and investors. Don&#039;t let regret make you lose more! <\/span><span style=\"font-weight: 400;\">It is recommended that businesses focus on future performance rather than past expenses to optimize business strategy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To increase the efficiency of corporate financial processes with <strong><a href=\"https:\/\/bizzi.vn\/quan-ly-chi-phi\/\">cost management<\/a><\/strong> streamlined, register to experience the powerful assistant tool - Bizzi. Trusted and deployed by many large enterprises in many fields such as VT Healthcare, kewpie, MASAN Group,...\u00a0<\/span><\/p>\n<figure id=\"attachment_999971035\" aria-describedby=\"caption-attachment-999971035\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999971035\" title=\"Bizzi helps businesses track, record and manage costs lean\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/bizzi-expense-quan-ly-chi-phi.webp\" alt=\"Bizzi helps businesses track, record and manage costs lean\" width=\"1200\" height=\"675\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/bizzi-expense-quan-ly-chi-phi.webp 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/bizzi-expense-quan-ly-chi-phi-300x169.webp 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/bizzi-expense-quan-ly-chi-phi-768x432.webp 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/bizzi-expense-quan-ly-chi-phi-18x10.webp 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999971035\" class=\"wp-caption-text\">Bizzi helps businesses track, record and manage costs lean<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\"><strong>Bizzi <\/strong>Support businesses to track, record, report expenses and manage budgets in real time with centralized expense management with outstanding features:<\/span><\/p>\n<p><strong>\u2013 Simplify the process of collecting invoices \u2013 creating expenses<\/strong><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Reduce invoice receipt and verification time \u2013 initiate expenses in just 2 taps<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Proactive mass expense reporting helps streamline processes<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Automatically navigate the browsing flow according to established units, regulations, and decentralization<\/span><\/li>\n<\/ul>\n<p><strong>\u2013 Convenient and transparent document approval<\/strong><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Control costs strictly according to policies and budget<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Complete and valid invoices and documents<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Prepare budgets by department, project and spending category<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Warning when costs and payment requests do not\/do exceed the budget<\/span><\/li>\n<\/ul>\n<p><strong>\u2013 Strictly control costs according to policies and budgets<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Display quick reports of spending information, updates on estimated spending - actual spending in focus<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Dashboard for intuitive, multi-dimensional cost management in real time across multiple platforms<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Contact Bizzi now to learn about the possibilities of digitizing and automating revenue and expenditure transactions for your business!<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b><i>Link to register for a trial of the Solution Suite for modern finance departments: <a href=\"https:\/\/bizzi.vn\/dang-ky-dung-thu\/\">https:\/\/bizzi.vn\/dang-ky-dung-thu\/\u00a0<\/a><\/i><\/b><\/li>\n<li aria-level=\"1\"><b><i>Schedule a demo: <a href=\"https:\/\/bizzi.vn\/dat-lich-demo\/\">https:\/\/bizzi.vn\/dat-lich-demo\/\u00a0<\/a><\/i><\/b><\/li>\n<\/ul>\n<p><strong>Read more:<\/strong><\/p>\n<ul>\n<li><strong><a href=\"https:\/\/bizzi.vn\/chi-phi-san-xuat-la-gi\/\">What is production cost in corporate financial management?<\/a><\/strong><\/li>\n<li><strong><a href=\"https:\/\/bizzi.vn\/chi-phi-san-xuat-chung-la-gi-dinh-nghia-vai-tro-va-cach-hach-toan-chi-phi-san-xuat-chung\/\">General production costs in the latest business<\/a><\/strong><\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":"<p>What is a sunk cost? This is a common psychological trap that businesses can easily fall into, leading to wrong decisions\u2026<\/p>","protected":false},"author":56,"featured_media":999971540,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[263],"tags":[],"class_list":["post-999971534","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kien-thuc"],"acf":[],"_links":{"self":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999971534","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/comments?post=999971534"}],"version-history":[{"count":7,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999971534\/revisions"}],"predecessor-version":[{"id":999974598,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999971534\/revisions\/999974598"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media\/999971540"}],"wp:attachment":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media?parent=999971534"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/categories?post=999971534"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/tags?post=999971534"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}