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 the following costs, choose 'Yes' to indicate if the cost or benefit is a relevant cost or benefit, irrelevant cost or benefit, sunk cost, or opportunity cost (can choose "Yes" in more than one column if applicable). (Select 'No' in the inappropriate cells.) $40,000 salary from Shelton Anticipated $48,000 salary with an accounting degree Tuition and books for years 1 to 3 of college Cost to relocate to Seattle Tuition and books for remaining two semesters Relevant Cost or Benefit Irrelevant Cost or Benefit Sunk Cost Opportunity Cost

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 the following costs, choose 'Yes' to indicate if the cost or benefit is a relevant cost or benefit, irrelevant cost or benefit, sunk cost, or opportunity cost (can choose "Yes" in more than one column if applicable). (Select 'No' in the inappropriate cells.) $40,000 salary from Shelton Anticipated $48,000 salary with an accounting degree Tuition and books for years 1 to 3 of college Cost to relocate to Seattle Tuition and books for remaining two semesters Relevant Cost or Benefit Irrelevant Cost or Benefit Sunk Cost Opportunity Cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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 the following costs, choose 'Yes' to indicate if the cost or benefit is a relevant cost or benefit, irrelevant cost or benefit,
sunk cost, or opportunity cost (can choose "Yes" in more than one column if applicable).
(Select 'No' in the inappropriate cells.)
$40,000 salary from Shelton
Anticipated $48,000 salary with an accounting degree
Tuition and books for years 1 to
college
Cost to relocate to Seattle
Tuition and books for remaining two semesters
$19,000 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
Relevant Cost
or Benefit
Irrelevant Cost
or Benefit
Sunk Cost
Opportunity
Cost

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