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TeachMeFinance.com - explain Sunk cost Sunk cost The term 'Sunk cost' as it applies to the area of energy can be defined as ' Part of the capital costs actually incurred up to the date of reserves estimation minus depreciation and amortization expenses. Items such as exploration costs, land acquisition costs, and costs of financing can be included'. Previous 5 Terms: Sun Pointing sunbittern Sunflower Oil Assistance Program (SOAP) sunglint suni Next 5 Terms: Sunny sunphotometer Sunrise Sunset sunspot About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005-2011 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional medical, legal or financial advice. Information presented at TeachMeFinance.com is provided on an "AS-IS" basis. Please read the disclaimer for details.