Which of the Following Is Relevant When Deciding to Replace

question 37

Multiple Choice

Which of the following is relevant when deciding to replace old equipment with new?

• A)Depreciation accumulated on the old equipment.
• B)The cost of the old equipment that the company is replacing.
• C)Trade-in value of the old equipment.
• D)Variable cost of utilities that will not change between the old and new equipment.

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Definitions:

Shortgrass Prairie

A grassland ecosystem characterized by the dominance of shortgrass species, adapted to arid conditions and grazing pressure, found in the central United States and other parts of the world.

Temperate Grassland

A grassland characterized by hot summers, cold winters, and less rainfall than is found in a temperate deciduous forest biome.

Mediterranean Sea

A sea connected to the Atlantic Ocean surrounded by the Mediterranean region and almost completely enclosed by land.

Chaparral

A biome with a Mediterranean climate (mild, moist winters and hot, dry summers). Chaparral vegetation is characterized by drought-resistant, small-leaved evergreen shrubs and small trees.