Answer:
Option D.
Explanation:
Any consideration of the true costs of sprawl must include the increased use of fossil fuels
Fossil fuel is a fuel formed from the decayed plants and animals that have been converted to crude oil, coal or natural gas over hundreds of millions of years by exposure to heat and pressure in the earth's crust.
Option D. is correct.
Answer:
B. Purchase Price of the Old Vehicle
Explanation:
Step 1: Consider the relevant transaction from the old vehicle
The Purchase price of the old vehicle is considered a historical cost and in most situations, especially for accounting purposes, this amount has undergone depreciation from the very first year the old vehicle was bought.
Instead of concentrating on the purchase price of the old vehicle, the only transaction from that old vehicle that is worth considering is the Proceeds from its disposal which can serve as part of the payment for the new fire truck to be purchased.
Step 2: Consider the relevant transactions for the new vehicle
One of the very first transactions that are relevant for the new vehicle is the purchase price. A very expensive new fire truck can cancel out the benefits of its acquisition since the main essence of acquisition is to save cost.
Step 3: Consider the Expected Operating Expenses that can be saved by the new truck
This the main reason advanced by the CIty of San Diego to get a new fire truck. Hence, a fire truck that tends to increase maintenance and operating cos will not fit into the decision.
Based on these explanations, therefore, the only transaction that is not relevant to this decision is the purchase price of the old vehicle
