Purpose Compare and contrast how the accounting, organizational behavior and other literatures analyze sunk costs. Sunk costs form a key part of the decision-making component of the management accounting literature, which generally include previously incurred and unrecoverable costs. Management...

While cost allocation decisions attract considerable attention in the management accounting literature, many studies are contradicting and inconclusive. They often seek to develop product or service weights in order to make operating decisions with the sole objective of maximizing the firm’s...