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30.07.2022 - 17:48

The City of Miami is about to replace an old fire truck with a new vehicle in an effort to save maintenance and other operating costs. Which of the following items, all related to the transaction, would not be considered in the decision? a. Purchase pric

Question:

The City of Miami is about to replace an old fire truck with a new vehicle in an effort to save maintenance and other operating costs. Which of the following items, all related to the transaction, would not be considered in the decision?

a. Purchase price of the new vehicle.

b. Purchase price of the old vehicle.

c. Savings in operating costs as a result of the new vehicle.

d. Proceeds from disposal of the old vehicle.

e. Future depreciation on the new vehicle.

Answers (1)

Inez April 12, 2023 в 11:31

The answer is (b) Purchase price of the old vehicle. This is because the city has already decided to replace the old fire truck, and the purchase price of the old vehicle is not relevant to the decision to acquire the new vehicle. The other options (a, c, d, and e) are all relevant factors to consider in making this decision.

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