Examples
Land that can be sold after a development project fails.Cutting back on advertising when products sales are lower than expected.A retail shop that cuts back on shifts when a recession hits.A contingent workforce that can be released when a project fails.Inventory that can be sold at a clearance price to make way for a new product line.Value
Making decisions based on costs that you can change as opposed to sunk costs that are already unrecoverable.| Overview: Prospective Cost | ||
Type | ||
Definition (1) | A future expenditure or past cost that can be recovered. | |
Definition (2) | A cost that is within your power to change within the context of a decision or strategy. | |
Value | ||
Related Concepts | ||
