Bee Company Is Considering Replacing a Machine That Is Presently

question 115

Multiple Choice

Bee Company is considering replacing a machine that is presently used in the production of its product.The following data are available: $$\begin{array} { l r r } & \text { Old Machine } & \begin{array} { r } \text { Replacement } \\\text { Machine }\end{array} \\\text { Original cost } & \$ 67,000 & \$ 54,000 \\\text { Useful life in years } & 13 & 4 \\\text { Current age in years } & 9 & 0 \\\text { Book value } & \$ 32,000 & - \\\text { Disposal value now } & \$ 18,000 & - \\\text { Disposal value in 5 years } & \$ 1,000 & \$ 6,000 \\\text { Annual cash operating costs } & \$ 9,000 & \$ 7,000\end{array}$$ The _____ is irrelevant.

• A)annual operating cost of the old machine
• B)original cost of the replacement machine
• C)disposal value of the old machine
• D)disposal value in five years

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Definitions:

Imitation

The action of using someone or something as a model and attempting to replicate their behavior or characteristics.

Modeling

The process of learning behavior by observing and imitating others.

Indirect Reinforcement

Reinforcement that occurs through the observation of the consequences of actions taken by others, rather than through direct personal experience.

Social Learning Theory

A theory that proposes people learn behaviors, attitudes, and emotional reactions through observing others, rather than through direct experience alone.