Chapter 5, Problem 19AA

To determine

To check: The costs that are included in the operating of an automobile.

Explanation of Solution

Operating an automobile or using an automobile is the same thing and it includes various expenses like maintenance cost of the automobile, fuel cost, repair costs, depreciation, and insurance fee.

Here, the maintenance cost includes regular service costs and if a person drives a car then it will require gasoline so the price of gasoline is also included in the cost of operating the car. Moreover, if any break down occurs in the car then it will also be included in the operating cost. Similarly, the value of the car decreases over time and after a certain period, the renewal of insurance is required. Thus all these expenses are also included in the operating costs.