Stranded Plant

is a cost that has been incurred, but can not be reversed. Usually referred to as a sunk cost.

Stranded plant refers to costs invested in equipment or facilities that cannot be recovered or reversed, similar to a sunk cost.

- Used in product/service costing, budgeting, and variance analysis.
- Used to support pricing decisions and profitability analysis by cost behavior and drivers.

- Example: The costing team uses **Stranded Plant** to allocate costs and analyze margins by product line.

- Why it matters: Improves cost accuracy, supports better pricing and budgeting, and strengthens performance measurement.