fb

A sunk cost but at least I didn’t sink….

It’s a common theme in discussions with my friends that we all seem to be getting busier and busier at work. Spare time is at a premium.

One of my hobbies when I do have some spare time is trying to keep fit. Six years ago I signed up for the 2004 London triathlon and since then I have been hooked on the sport. Triathlon is an event where you swim, cycle and then run. I’m very much an amateur and look up in awe at the elite athletes that seem to literally sprint around the course. For me it’s the training, competing and comradeship that is the fun behind the event.

At last year’s London Triathlon I was hoping to beat my personal best but unfortunately picked up an injury to one of my knees in the run up to the event. I was in two minds whether to start the race and then try to struggle through and finish it. After all, I had spent money on entering and had trained hard for the event.

It took a friend of mine who happens to be an accountant to make me see sense. He mentioned that the money I had spent on entering and the time I had spent on training was simply a sunk cost.  (Students will remember from our free ExPress notes that sunk costs are not relevant. They have already taken place and cannot be reversed.)

What I needed to do now was to focus on the situation as it stood at that time rather than review any costs that had been incurred already.  A very sensible piece of advice by my friend and probably saved me from injuring my knee any further.

In the end though I went for the middle ground by completing the swim but not the bike or run. As my friend pointed out, I didn’t sink in the swim and ignored the sunk costs in the bike and run!

Share this entry

Recent articles

View All Articles
PwC Australia and the “Rule of Three”
Sep 21, 2023
Title
PwC Australia and the “Rule of Three”
Excerpt

As the future business leaders of tomorrow, it’s crucial for students to stay updated on key developments in […]

CIMA VS ACCA: which is best for you? (and what about CMA?)
Sep 15, 2023
Title
CIMA VS ACCA: which is best for you? (and what about CMA?)
Excerpt

When it comes to a career in accounting or finance, deciding which professional qualification to pursue can be […]

How’s your lipstick?
Sep 12, 2023
Title
How’s your lipstick?
Excerpt

In the world of business, understanding consumer behavior is crucial. The “lipstick effect” offers a fascinating glimpse into […]

How an online Certified Management Accountant (CMA) course can advance your career.
Sep 05, 2023
Title
How an online Certified Management Accountant (CMA) course can advance your career.
Excerpt

In today’s fast-paced and competitive business world, professionals are constantly looking for ways to differentiate themselves and advance […]

Waiting for your ACCA exam results…
Sep 01, 2023
Title
Waiting for your ACCA exam results…
Excerpt

Waiting for the results of your ACCA exams can be an incredibly stressful time. The uncertainty, the anticipation, […]

APM vs AFM ACCA: which path suits your career goals?
Aug 30, 2023
Title
APM vs AFM ACCA: which path suits your career goals?
Excerpt

“Which is easier – Advanced Performance Management (APM) or Advanced Financial Management (AFM)?”

ROI: how enrolling employees on ACCA courses will yield long-term business success
Aug 18, 2023
Title
ROI: how enrolling employees on ACCA courses will yield long-term business success
Excerpt

The Association of Chartered Certified Accountants (ACCA) is one of the most respected global accounting qualifications. Organisations across […]

Would Michael Porter sleep in this bed?
Aug 14, 2023
Title
Would Michael Porter sleep in this bed?
Excerpt

Management theories play a significant role in guiding corporate strategy. And when it comes to strategy and management […]