The Equivalent Annual Cost Method Is Useful in Determining

question 31

Multiple Choice

The equivalent annual cost method is useful in determining:

• A) the annual operating cost of a machine if the annual maintenance is performed versus when the maintenance is not performed as recommended.
• B) the tax shield benefits of depreciation given the purchase of new assets for a project.
• C) which one of two machines to acquire given equal machine lives but unequal machine costs.
• D) which one of two machines to purchase when the machines are mutually exclusive, have different machine lives, and will be replaced once they are worn out.

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Definitions:

Presenting Bad-News Messages

The process of delivering unfavorable or negative news in a manner that attempts to minimize damage or maintain relationships.

Misleading the Reader

Presenting information in a way that could cause the reader to have a false understanding or impression.

Cushion the Negative Point

A communication technique involving the softening of potentially negative or unfavorable information to minimize its impact on the audience.

Closing Statement

The final comment or conclusion at the end of a document, presentation, or discussion aimed at summarizing the main points and leaving a lasting impression.