Suppose you have just finished your third year of college and expect to graduate with a bachelor’s degree in accounting after completing two more semesters of coursework. The salary for entry-level positions with an accounting degree is approximately $48,000 in your area. Shelton Industries has just offered you a position in its northwest regional office. The position has an annual salary of $40,000 and would not require you to complete your undergraduate degree. If you accept the position, you would have to move to Seattle.

Required:
For each of me following costs, Write Yes to indicate if the cost/benefit is a cost/benefit, irrelevant cost/benefit, sunk cost, or opportunity cost.


Relevant Cost or Benefit Irrelevant Cost or Benefit Sunk Cost Opportunity Cost

$40.000 salary from Shelton
Anticipated $48.000 salary with an accounting degree
Tuition and books for years 1—3 of college
Cost to relocate to Seattle
Tuition and books for remaining two semesters
$1 9,000 from your part-time job, which you plan to keep until you graduate
Cost to rent an apartment in Seattle (assume you are currently living at home with your parents)
Food and entertainment expenses, which are expected to be the same in Seattle as where you currently live
Increased promotional opportunities that will come from having a college degree