You Purchase a Pizza Oven That Is Expected to Last

question 51

Multiple Choice

You purchase a pizza oven that is expected to last 10 years for $15,000. How do you account for the economic cost of the oven?

• A)Expense the oven, taking a write-off for the entire price in the first year.
• B)Amortize the cost over the 10-year life of the oven, resulting in a cost of $1,500 per year.
• C)Calculate the value of renting the oven to someone else and use that as your cost.
• D)The cost is the price of the oven minus any revenue made selling pizzas made in the oven.

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Definitions:

Emotions

Complex psychophysiological experiences reflected in psychological states, behavioral responses, and physiological changes.

Introvert

A person who prefers solitary activities and focuses on their own thoughts and feelings rather than seeking external stimulation.

Extravert

An individual who is outgoing, sociable, and derives energy from interactions with others, as opposed to solitude.

Emotional Responsiveness

The degree to which an individual responds to emotional stimuli or situations in their environment.