Cost Behavior

Costs are classified according to the type of analysis that is being done. Suppose you were offered a job making $50,000 annually after you received your undergraduate degree. However, you made a decision to get your MBA in 2 years rather than taking the job. You will incur tuition, books and living costs for these 2 years.

REQUIRED:

• What costs are relevant to your decision? Note that some costs relevant to a decision may not be quantitative.  
• What  is the opportunity cost of this decision.

Answer rating: 100% (QA)

Relevant Costs and Opportunity Cost of Pursuing an MBA Relevant Costs Direct Costs Tuition The annual tuition fee for your MBA program Books and Suppl... View the full answer