A-Z Popular Blog Top Search »
Business Strategy
Business Costs
Competitive Advantage

What are Legacy Costs?

 , updated on
Legacy costs are current expenditures related to the past that add no value to an organization's business or strategy.
Significant legacy costs can impact an organization's competitiveness. They are often related to failed projects, ineffective strategies and years of insufficient funding for important programs such as pensions.
In many cases, legacy costs are related to changes in strategy. For example, leadership changes in government can result in legacy costs as the programs of the outgoing government are abandoned.


Cleaning up environmental damage at a factory site that had leaked chemicals into the ground.
Funding a pension that was underfunded for decades.
Payments for the debt incurred by failed or discontinued strategies.
Payments for debts incurred due to financial mismanagement.
Design debt such as poorly designed software and systems.
Overview: Legacy Costs
Current costs related to discontinued strategies or underfunded obligations of the past.
Related Concepts
Next: Business Costs

Business Costs

This is the complete list of articles we have written about business costs.
Applied Cost
Business Equipment
Capacity Cost
Capital Improvement
Carrying Costs
Closing Costs
Cost Of Capital
Cost Of Revenue
Cost Of Living
Direct Cost
Distress Cost
Fixed Costs
Friction Cost
Employee Costs
Holding Costs
Intangible Cost
Marginal Cost
Operating Cost
Operating Expenses
Legacy Costs
Outlay Cost
Lifetime Cost
Overhead Costs
Menu Costs
Relevant Cost
Normal Costs
Sunk Costs
Tangible Cost
Operational Costs
Travel Expenses
Unit Cost
Opportunity Cost
Variable Costs
Prospective Cost
Semi Variable Cost
Step Costs
Switching Costs
Transaction Costs
If you enjoyed this page, please consider bookmarking Simplicable.

Business Costs

A list of common types of business cost.

Matching Principle

A principle of financial accounting.

Business Costs

A list of common types of business cost.

Cost Escalation

A definition of cost escalation with an example.

Cost Reduction Examples

Common examples of cost reduction.

Cost Estimates

The common types of cost estimate.

Relevant Cost

A definition of relevant cost with examples.

Cost Structure

Detailed examples of how to map out the cost structure of a business.

Cost Competition

The definition of cost competition with examples.

Cost Goals

An overview of cost goals with examples.

Business Risks

A list of common business risks.

Risk Treatment

The five things that can be done about risk.

Risk Mitigation

A list of techniques for reducing risk.

Positive Risk

The potential that you'll achieve too much of a good thing.

Dread Risk

Any risk that people have a strong aversion too.

Risk vs Opportunity

The surprising similarities between risk and opportunity.

Risk Management vs Contingency Planning

The difference between risk management and contingency planning.


The common types of uncertainty in decision making and strategy.

Inventory Risk

The common types of inventory risk.

Business Risk Management

An overview of common business risk management techniques.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map