Top Posters
Since Sunday
5
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
johnsmith12 johnsmith12
wrote...
Go to Answer
Posts: 181
Rep: 0 0
3 years ago
You purchase a pizza oven that is expected to last 10 years for $15,000. How do you account for the economic cost of the oven?

▸ Expense the oven, taking a write-off for the entire price in the first year.

▸ Amortize the cost over the 10-year life of the oven, resulting in a cost of $1,500 per year.

▸ Calculate the value of renting the oven to someone else and use that as your cost.

▸ The cost is the price of the oven minus any revenue made selling pizzas made in the oven.
Textbook 
Managerial Economics and Strategy

Managerial Economics and Strategy


Edition: 3rd
Authors:
Read 177 times
1 Reply
Replies
Answer verified by a subject expert
ntong17ntong17
wrote...
#1
Posts: 108
Rep: 2 0
3 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

johnsmith12 Author
wrote...

3 years ago
Helped a lot
erimis
wrote...

Yesterday
Correct Slight Smile TY
DaiwalkerX
wrote...

2 hours ago
this is exactly what I needed
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1390 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 724
  
 1400
  
 5015
Your Opinion
What's your favorite math subject?
Votes: 293
Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?