Multiple Choice
A firm bought a pizza oven 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 of the oven does not matter when deciding whether or not to shut down.
Correct Answer:
Verified
Correct Answer:
Verified
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