Emir decides to sign up for a college accounting course. He pays the $500 tuition, but before the course starts he is offered a job that would conflict with the class time. The tuition is no longer refundable. In deciding whether to accept or decline the job offer, the $500 spent on the class is:

Question

Quizplus · Accepted Answer

The $500 spent on the class is a sunk cost, meaning it's a cost that has already been incurred and cannot be recovered. Therefore, it should not be considered in the decision-making process of whether to accept or decline the job offer.

Emir Decides to Sign Up for a College Accounting Course