Ali is currently working as a human resource manager for a company and earns a good salary. He is planning to pursue a Master of Business Administration (MBA) degree. He recently received an offer from University A, which included the cost of tuition fees. If Ali decided to go for the MBA study, his company would stop paying his salary. At the same time, if Ali completed his MBA degree, he would earn a higher salary than his current one. Furthermore, Ali has recently purchased an apartment in the city and moved in. For Ali, when considering whether or not to go for the MBA study, the cost of tuition fees is referred to as: a. None of the given answers. b. Incremental revenue. C. Opportunity cost. d. Incremental cost.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter6: Business Expenses
Section: Chapter Questions
Problem 87DC
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Ali is currently working as a human resource manager for a company and earns a good salary. He is planning to pursue a
Master of Business Administration (MBA) degree. He recently received an offer from University A, which included the cost of
tuition fees. If Ali decided to go for the MBA study, his company would stop paying his salary. At the same time, if Ali completed
his MBA degree, he would earn a higher salary than his current one. Furthermore, Ali has recently purchased an apartment in
the city and moved in. For Ali, when considering whether or not to go for the MBA study, the cost of tuition fees is referred to
as:
a.
None of the given answers.
b.
Incremental revenue.
C.
Opportunity cost.
d.
Incremental cost.
e.
Sunk cost.
Clear my choice
Transcribed Image Text:Ali is currently working as a human resource manager for a company and earns a good salary. He is planning to pursue a Master of Business Administration (MBA) degree. He recently received an offer from University A, which included the cost of tuition fees. If Ali decided to go for the MBA study, his company would stop paying his salary. At the same time, if Ali completed his MBA degree, he would earn a higher salary than his current one. Furthermore, Ali has recently purchased an apartment in the city and moved in. For Ali, when considering whether or not to go for the MBA study, the cost of tuition fees is referred to as: a. None of the given answers. b. Incremental revenue. C. Opportunity cost. d. Incremental cost. e. Sunk cost. Clear my choice
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