Bradley Industries Is Considering Replacing a Machine That Is Presently

question 88

Multiple Choice

Bradley Industries is considering replacing a machine that is presently used in its production process.
Which of the following is irrelevant to the replacement decision?

Which of the information provided in the table is irrelevant to the replacement decision?

• A)the sales price of the new machine
• B)the original cost of the old machine
• C)the current disposal value of the old machine
• D)the annual cash operating costs for both machines

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Definitions:

Budgeted Data

A financial plan for the future concerning the revenues and costs of a business.

Production Needs

Refers to the requirements necessary to complete the manufacturing process, including raw materials, labor, and machinery.

Raw Materials

The basic substances used in the production of goods, which are transformed during the manufacturing process.

Raw Materials Purchases

Expenditures for the acquisition of materials that are directly used in the production of goods or services.