You want to go skiing for the day. However, you realize you are scheduled to work. If you call in sick and do not go to work, the wages you will not earn (assuming you are an hourly employee) are considered a(n):

Question

Quizplus · Accepted Answer

The wages you will not earn due to skipping work to go skiing represent an opportunity cost. This is because you are sacrificing the opportunity to earn those wages by choosing to go skiing instead of working. It is not a sunk cost (already incurred and irreversible), an out-of-pocket cost (you are not actually spending any money), or a differential cost (not related to any specific decision or comparison).

You Want to Go Skiing for the Day