Question

Give examples of various costs Attending college involves incurring many costs. Give an example of a college cost that could be assigned to each of the following classifications. Explain your reason for
assigning each cost to the classification.
a. Sunk cost.
b. Discretionary cost.
c. Committed cost.
d. Opportunity cost.
e. Differential cost.
f. Allocated cost.

Answer 1

Explanation:

i would have to define each of these costs and then assign the best college costs that represents it

a. sunk cost

A sunk cost is a cost that cannot be gotten back, this kind of caost has already being incurred. an example of this college cost would be tuition fee for the past semesters.

b. discretionary cost

this is a cost that the student can survive without. also known as avoidable cost. the cost here would be the amount of money the student spends on dues.

c. commited costs

comitted costs are confirmed costs that the student has to make for services or goods to be taken. this college cost would be book prices

d. opportunity cost as we know is the alternative forgone. that is what was forgone in order to take to schooling. this would be all earnings from working that the individual has foregone since he or she is now a college student

e. this could also be called the incremental cost. thius kind of cost is different between alternatives in in situations where one has to make choices or alternatives. this college cost would be expenditure on attending one school over another school.

f. allocated cost

a cost that is allocated based on the activities that were done while making the product. this would be fee that is charged to a full time college student per course