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

question 57

Multiple Choice

A firm bought a pizza over 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 oven does not matter when deciding whether or not to shut down.