A Company Decided to Replace an Old Machine with a New

question 219

Multiple Choice

A company decided to replace an old machine with a new machine. Which of the following is considered a relevant cost?

• A)the book value of the old equipment
• B)depreciation expense on the old equipment
• C)the loss on the disposal of the old equipment
• D)the current disposal price of the old equipment

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Definitions:

Basic Research

Fundamental research aimed at gaining more comprehensive knowledge or understanding of the subject without being driven by any immediate practical application.

Practical Problems

Real-world issues or challenges that need to be solved through practical solutions and applications.

Applied Research

Investigations designed to tackle concrete challenges instead of just accumulating information for the sake of it.

Basic Research

Investigation and study conducted to increase fundamental knowledge and understanding of physical, chemical, or functional mechanisms, without immediate practical application.