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27 June, 22:20

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.

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  1. 27 June, 22:44
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    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.
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