| Article ID: | iaor1995893 |
| Country: | Italy |
| Volume: | 49 |
| Start Page Number: | 14 |
| End Page Number: | 21 |
| Publication Date: | Mar 1994 |
| Journal: | Ingegneria Economica |
| Authors: | Peccati L. |
| Keywords: | optimization |
This paper considers the relevance of sunk costs to decisions about the utilization of a plant. It is shown that the claim that such costs are often irrelevant has a weak foundation. To demonstrate the place of sunk costs, an example is presented which uses these in the planning of the use of an item of machinery.