Question

Ann is trying to decide which one of two job offers she will accept. Several items are presented below: Job Offer A(1)Base Salary $50,000(2)Overtime compensation is comp. time(3)Moving allowance $3,000(4)Signing bonus $2,000(5)Job search costs incurred $300Job Offer B(1)Base salary $50,000(2)Overtime compensation is hourly rate(3)Moving allowance $3,000(4)Signing bonus $0(5)Job search costs incurred $500Select the items that are irrelevant to Ann's decision.

Answer 1

Answer:

1)Base Salary $50,000

(3)Moving allowance $3,000

(5)Job search costs incurred $300 Job Offer

Explanation:

In this scenario, the person who is trying to decide for a job change will look at various things that can improve their future to the greatest extent.

Like: Medical allowances, paid leaves, overtime wages, bonuses, and incentives, etc.  

Many factors are there to join a new company.  

Based on the situation, the overtime compensation, and the signing bonus are the reasons to accept the job offer.

And, the remaining reasons like - basic salary, moving allowance are the service which is the same for most of the companies. The job search cost is a sunk cost that is not recovered.  

Hence, these costs will not be considered.