A Company Decided to Replace an Old Machine with a New

question 79

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 of the old equipment
• C) The loss on disposal of the old equipment
• D) The current disposal price of the old equipment

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Definitions:

Salience

The quality of being particularly noticeable or important; prominence.

Stereotypes

Oversimplified generalized beliefs about a particular group of people or things.

Diminished Judgement

A state or condition where a person's ability to make considered decisions or evaluations is impaired or reduced.

Sorting

The process of arranging items in a systematic order or classifying them into categories.