You currently work as a machinist in a factory. Your salary is $45,000 per year. You are thinking about quitting your job and going back to college. It will take you two years to obtain your college degree. Tuition and other costs of the education will total $60,000. The $60,000 cost of the education is a(n):

Question

Quizplus · Accepted Answer

The $60,000 cost of education is a differential cost because it represents the additional cost incurred if you choose to go back to college instead of continuing to work.

You Currently Work as a Machinist in a Factory