Which of the following is not a relevant cost in the lease-buy decision?
A)Gasoline consumption
B)Excess mileage charge
C)Disposition charge
D)Capitalized cost reduction

Question

Quizplus · Accepted Answer

Gasoline consumption is not a relevant cost in the lease-buy decision because it is a variable cost that will occur regardless of whether the vehicle is leased or bought. The relevant costs in the lease-buy decision include the cost of the lease payments, the cost of financing a purchase, any upfront fees or down payments, as well as any additional costs or penalties associated with each option. B, C, and D may all be relevant costs depending on the specific terms of the lease or purchase agreement.

Which of the Following Is Not a Relevant Cost in the Lease-Buy