When Deciding to Purchase a New Cutting Machine or Continue

question 120

Multiple Choice

When deciding to purchase a new cutting machine or continue using an existing machine, the following costs are all relevant except the:

• A) Original cost of the old machine.
• B) Cost (purchase price) of the new machine.
• C) Disposal (salvage) value of the old (existing) machine.
• D) Annual savings in operating costs if the new machine is purchased.
• E) Maintenance costs, if expected to be less under the new machine.

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Definitions:

Monochronic Cultures

Cultures in which people tend to do one thing at a time.

Low-context Cultures

Cultures in which communication is direct, precise, and explicit, relying less on context and non-verbal cues to convey meaning.

Silent Language

Non-verbal forms of communication, such as body language, facial expressions, and gestures, that convey messages without the use of words.

Culture

A set of shared values, beliefs, norms, and practices that influences the way individuals in a group or organization interact.