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E.Central MN | Japanese car companies expect a decrease in part costs because engineering costs are accounted for in the initial production contract and that cost won't need to be paid for a second time unless some significant change is required (and if that happens then the new engineering costs will be accounted for in the new contract proposal). That way of looking at sunk costs makes a little sense. Production processes should become more efficient over time. Some companies have a system that pays their workers for ideas that improve efficiency. Sometimes relatively simple ideas can make company processes more efficient over time.
Edited by PeteMN 2/12/2026 21:51
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Why Walmart has cheaper food price
