A Relevant Cost in Determining Whether to Take the Train

question 72

Multiple Choice

A relevant cost in determining whether to take the train to Phoenix or fly to Phoenix would be

• A)the cost of a housesitter for your pets.
• B)the cost of the plane ticket.
• C)the cost of the hotel room in Phoenix.
• D)the cost of the rental car in Phoenix.

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Definitions:

Mark-up

Mark-up refers to the amount added to the cost price of goods to cover overhead and profit; it is a percentage of the cost price.

Camping Tents

Portable shelters made of cloth used for outdoor overnight stays, especially in wilderness areas.

Net Cost

The actual cost of a product or service after all discounts, rebates, or allowances have been applied.

Breakeven

A situation where the sum of all costs equals the sum of all revenues, with no profit or loss occurring.