Ida Enterprises Is Considering Replacing a Machine That Is Presently

question 149

Multiple Choice

Ida Enterprises is considering replacing a machine that is presently used in its production process. The following information is available: Which of the information provided in the table is irrelevant to the replacement decision?

• A)The annual operating cost of the old machine
• B)The original cost of the old machine
• C)The current disposal value of the old machine
• D)Both A and C

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Definitions:

Activity Variance

The difference between the expected amount of activity and the actual activity level, often used in budgeting and forecasting.

Selling and Administrative Expenses

Costs not directly tied to the production of goods or services, including sales, marketing, and administrative functions.

Units

Represents a measure of quantity or volume, often used in production, inventory, or accounting contexts.

Manufacturing Overhead

refers to indirect factory-related costs incurred when producing a product, which can include costs related to the maintenance and operation of the factory.