does this accurately describe sunken cost? A sunk cost refers to costs that have already been incurred and cannot be recovered, regardless of future decisions. These costs should not be considered in our decision-making process because they do not influence the future consequences of our choices. The implication of sunk costs is that they should be ignored when deciding what course of action to take next. For example, if you purchase a non-refundable ticket to a concert but then realize you have other pressing commitments, the cost of the ticket is sunkyou cannot get your money back. The lesson of sunk costs is to focus on current costs and benefits when making decisions, rather than dwelling on past expenses that cannot be changed. By ignoring sunk costs, individuals and organizations can make more rational decisions based on future outcomes and potential benefits, rather than being influenced by past investments that are no longer relevant to the decision at hand