The salary of an executive who decides to quit her job and return to school full time is a(n):

Question

Quizplus · Accepted Answer

The cost of quitting her job is not a sunk cost because it is a future expense that could have been avoided if she had not made the decision to return to school. It is also not an incremental cost because it is not related to a specific decision or action. Instead, it is an opportunity cost because it represents the value of the alternative option she gave up (i.e. continuing to work and earn a salary).

The Salary of an Executive Who Decides to Quit Her