When a Business Is Considering Whether to Replace Old Equipment

question 99

True/False

When a business is considering whether to replace old equipment with newer equipment, the cost of operating the old equipment-compared to the cost of operating the new equipment-is information relevant to the business decision.

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Definitions:

Tangible

Physical items or properties that can be seen, touched, and measured, such as machinery, buildings, and land.

Variation

Variation is the difference or diversity in size, shape, quality, or form among individual elements or items within a population or a series of events.