In a Decision to Keep or Replace Existing Equipment,________ Is

question 98

Multiple Choice

In a decision to keep or replace existing equipment,________ is a false statement.

• A)depreciation on the new equipment is relevant
• B)the disposal value of the old equipment is irrelevant
• C)the cost of the new equipment is relevant
• D)the book value of the old equipment is irrelevant

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Definitions:

Utilitarianism

A philosophical concept that holds the best action is the one that maximizes utility, generally defined as that which produces the greatest well-being of the greatest number of people.

Deontology

An ethical theory that suggests actions are morally right because of their characteristics, not just their outcomes, emphasizing duties and rules.

Decision Making

The process of making choices or reaching conclusions, especially when preferences are considered among a range of potential options.

Traditional Corporation

A conventional business entity focused on profitability and growth, characterized by hierarchical organization and shareholder ownership.