Hello, what are the costs of a plant/factory shutdown?
I identified the following:
Sunk costs
Penalties (for instance paying fees for suppliers)
Lay-offs costs
(edited)
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Factory shutdown costs
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Yes, I agree with your list. Cost must also include cost of disposing/recycling/ equipment and any other admin fee (legal, environmentatl).
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Hello!
I would not consider sunk costs at this point tbh -they are precisely sunk-.
Over that, all the admin cost of selling/removing the building, and the taxes paid on the sale if so
Hope it helps!
Cheers,
Clara
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I'd add opportunity costs - revenue that you're ceasing if you're closing the factory.
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Hi there,
Agreed with your list and Adi's addition.
That said, I wouldn't put sunk costs here (by their definition, they are sunk).
Finally, I would add the biggest cost of them all: opportunity cost. I.e. lost revenues.
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Agree with the colleagues' additions! Opportunity cost may be crucial here.
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