Sunk and Incremental Costs

Sunk costs are expenditures made in the past or that may be made in future as part of contractual agreement. The costs for inventory and future rental payments on a warehouse and contractual commitment to labour unions that must be paid as a long - term lease are sunk costs. They are not affected by decision making therefore, they are regarded as irrelevant for short run analysis.

边际或增量成本在决策中发挥了重要作用，这是单位变化的总成本的变化。它有助于做出有关利润最大化产出率的简短决定。虽然增量成本是一个更广泛的概念，它是指实施特定管理决策的总成本的变化，例如引入新产品线，开展新的广告活动，添加新机器，更改分销渠道并替换旧机器。

由于可以通过不带来可避免或可逃避成本的活动的变化来避免增量成本。

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