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Is Training A Sunken Cost?

Author

Listed:
  • Yahya AlShehhi

    (Faculty of Applied Economics University of Debrecen)

Abstract

Training investment tends to portray diverse advantages for any company, regardless of its cost-effectiveness. The decision for training depends on the utilization of organizational benefits. The aimed of this study to investigate the relationship between decision of training investment and the theory of cost in perspective of accounting and economics. The foundation of collecting data was a secondary resource and employed analyzeing the previous researches as methodology approach. The study found the decision of investing in training is likely depended on opportunity cost concept as a stratrgic tools to gain competitive advantage and benefits in economicst view. More than that a framework and definition term created regarding a notable negative relationship between sunken costs and turnover.

Suggested Citation

  • Yahya AlShehhi, 2016. "Is Training A Sunken Cost?," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 287-294, July.
    • Handle: RePEc:ora:journl:v:1:y:2016:i:1:p:287-294
    as

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    File URL: http://anale.steconomiceuoradea.ro/volume/2016/n1/28.pdf
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    References listed on IDEAS

    as
    1. Karevold, Knut Ivar & Teigen, Karl Halvor, 2010. "Progress framing and sunk costs: How managers' statements about project progress reveal their investment intentions," Journal of Economic Psychology, Elsevier, vol. 31(4), pages 719-731, August.
    2. X. Henry Wang & Bill Z. Yang, 2001. "Fixed and Sunk Costs Revisited," The Journal of Economic Education, Taylor & Francis Journals, vol. 32(2), pages 178-185, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Training investment; decision making; cost theory; sunk cost; company turnover; sunken training cost;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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