1 Use open shelving and do not cover food with foil. 2  Checks foods in multiple locations throughout a cold storage area; temperature may not be uniform.  For ready-to-eat foods prepared on-site, label and comply with storage time standards (seven days maximum for food held at 41Âº F or below).
A sunk cost is a cost that an entity has incurred, and which it can no longer recover by any means. Sunk costs should not be considered when making the decision to continue investing in an ongoing project, since you cannot recover the cost. However, many managers continue investing in projects because of the sheer size of the amounts already invested in the past.
2. An example of sunk costs in accounting is the book value of existing assets such as fixed assets (e.g., machinery, equipment), inventory, investments, etc. Depreciation, amortization, and impairments also represent sunk costs.he equipment is worth zero. The remaining book value is $2,000 (i.e., $10,000 8 x $1,000). Asset write down (i.e., loss) represents a sunk cost. Even if the company continued using the equipment for the next two years, the remaining $2,000 would still need to be written off as a depreciation expense.