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Adi

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5

Factory shutdown costs

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

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)

5 answers

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Best Answer
Book a coaching with Adi

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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).

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

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.

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.

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.

Agree with the colleagues' additions! Opportunity cost may be crucial here.

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