The City Bus Company is considering a decision to cease the service to Fun Countryside and...

 

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The City Bus Company is considering a decision to cease the service to Fun Countryside and transfer the three buses and drivers from this route to a new service to Wonderland Countryside. The new service involves a longer journey time and more miles travelled but is likely to attract more passengers and a transport subsidy. Which of the following is an irrelevant cost in relation to this decision? Select one: O a. The additional fuel cost of the three buses on the longer journey. O b. The cost of making the application for the transport subsidy. O c. The additional wages to drivers for the longer journey to Wonderland Countryside which will involve overtime working. Od. The annual depreciation of each bus. Next page The City Bus Company is considering a decision to cease the service to Fun Countryside and transfer the three buses and drivers from this route to a new service to Wonderland Countryside. The new service involves a longer journey time and more miles travelled but is likely to attract more passengers and a transport subsidy. Which of the following is an irrelevant cost in relation to this decision? Select one: O a. The additional fuel cost of the three buses on the longer journey. O b. The cost of making the application for the transport subsidy. O c. The additional wages to drivers for the longer journey to Wonderland Countryside which will involve overtime working. Od. The annual depreciation of each bus. Next page

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The detailed answer for the above question is provided below Answer The unessential expense corresponding to the choice to stop the support of Fun Ope... View the full answer