ACTG2020_Week5 2014 Ch12CMD (1)

280 0050 0138 0065 0036 0569 160 per gallon 32 mpg

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: n ÷ 32 MPG $18,000 cost – $4,000 salvage value ÷ 5 years $18,000 – $4,000 salvage value ÷ years LO 1 Identifying Relevant Costs Automobile Costs (based on 10,000 kilometers driven per year) 1 2 3 4 5 6 Annual straight-line depreciation on car Cost of gasoline Annual cost of auto insurance and license Maintenance and repairs Parking fees at school Total average cost 7 8 9 10 11 12 13 Annual Cost of Fixed Items $ 2,800 1,380 360 Cost per km $ 0.280 0.050 0.138 0.065 0.036 $ 0.569 Some Additional Information Reduction in resale value of car per km of wear Round-tip train fare Benefits of relaxing on train trip Cost of putting dog in kennel while gone Benefit of having car in Waterloo Hassle of parking car in Waterloo Per day cost of parking car in Waterloo $ 0.026 $ 104 ???? $ 40 ???? ???? $ 25 LO 1 Identifying Relevant Costs From a financial standpoint, Cynthia would be better off taking the train to visit her friend. Some of the non-financial factor may influence her final decision. Relevant Financial Cost of Driving Gasoline (460 @...
View Full Document

This note was uploaded on 03/28/2014 for the course ACTG 2020 taught by Professor Lizfarrel during the Spring '11 term at York University.

Ask a homework question - tutors are online