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 total estimated cost of gas to be used by each vehicle.
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 as it does not affect the decision between purchasing hybrid or gasoline-engine cars. The total estimated cost of gas to be used by each vehicle and the purchase price of both models are relevant costs that need to be considered in the decision-making process.

A Company Is Deciding Whether to Purchase Hybrid Cars for Its