A company is deciding whether to purchase hybrid cars for its salespeople or gasoline-engine cars.All of the following costs would be relevant to its decision except
A)the cost per gallon of gasoline.
B)the purchase price of the hybrid model.
C)the book value of the current fleet of sales vehicles.
D)the purchase price of the gasoline-engine model.

Question

Quizplus · Accepted Answer

The book value of the current fleet of sales vehicles is not relevant to the decision of whether to purchase hybrid or gasoline-engine cars. The decision should be based on the costs of purchasing and operating each type of vehicle, including the purchase prices and fuel costs.

A Company Is Deciding Whether to Purchase Hybrid Cars for Its