You currently work as a machinist in a factory. Your salary is $15 per hour. 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 $21,000. You spent $9,000 preparing to be a machinist. In considering whether to go back to school, the $9,000 of prior training is a(n):

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Quizplus · Accepted Answer

The $9,000 spent on prior training is a sunk cost, which means it is a cost that has already been incurred and cannot be recovered. It should not be considered in the decision of whether to go back to college or not, as it is irrelevant to the future costs and benefits of obtaining a degree.

You Currently Work as a Machinist in a Factory