A Firm Bought a Pizza Oven for $13,500 and If

question 62

Multiple Choice

A firm bought a pizza oven for $13,500 and if it shut down now, could sell the oven for $9,500. Which of the following statements is TRUE?

• A)The relevant cost of the oven when considering shutting down is $13,500.
• B)The relevant cost of the oven when considering shutting down is $9,500.
• C)The relevant cost of the oven when considering shutting down is $4,000.
• D)The cost of the oven does not matter when deciding whether or not to shut down.

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