The Biggest Fixed Cost of Owning a Car Is Likely

question 48

Multiple Choice

The biggest fixed cost of owning a car is likely to be the ____________. ​

• A)loan payments
• B)fuel costs
• C)cost of license and renewals
• D)maintenance charges

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Definitions:

Relevant Costs

Costs that should be considered when making decisions, characterized by their occurrence in the future and variability depending on the decision made.

Historical Costs

The original monetary value of an asset or expense as recorded in the company's accounts at the time of the transaction, without adjustments for inflation.

Management Accountant

A management accountant is a finance professional who prepares and analyzes financial data to help managers make informed business decisions, focusing on budgeting, performance evaluation, and cost management.

Decision Model

A framework or guideline designed to facilitate the making of business decisions through systemic analysis and evaluation.