Ali is currently working as a human resource manager for a company and earns a good salary. He is planning to pursue a Master ofBusiness Administration (MBA) degree. He recently received an offer from University A, which included the cost of tuition fees. If Alidecided to go for the MBA study, his company would stop paying his salary. At the same time, if Ali completed his MBA degree, hewould earn a higher salary than his current one. Furthermore, Ali has recently purchased an apartment in the city and moved in. ForAli, when considering whether or not to go for the MBA study, the cost of tuition fees is referred to as:a.Incremental revenue.b. None of the given answers.O C.Incremental cost.O d. Opportunity cost.e.Sunk cost.NEXT PAGEAGEMacBook AirDIIF8QF780F6F5

Option (E) is correct Sunk cost

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 Oli decided to go for the MRA

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 Oli decided to go for the MRA

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 74DC

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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 the apartment is referred to as: a. Incremental revenue . b. Sunk cost c. of the given answers . d. Incremental cost. e. Opportunity cost .
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