Mary Ann is trying to decide whether to fly to Florida or New York.The cost of her ticket will be the same either way.The cost of the ticket is an example of a(n):
A) sunk cost.
B) opportunity cost.
C) relevant cost.
D) irrelevant cost.

Question

Quizplus · Accepted Answer

Since the cost of the ticket will be the same whether Mary Ann flies to Florida or New York, it does not affect her decision-making process. Therefore, it is considered an irrelevant cost.

Mary Ann Is Trying to Decide Whether to Fly to Florida