TEK, Inc, Is Considering Whether to Replace a Production Machine with with a Newer

question 41

Multiple Choice

TEK, Inc., is considering whether to replace a production machine with a newer model of the same machine. If TEK keeps the old machine, the trade-in value of the old equipment is an example of a(n)

• A)sunk cost.
• B)opportunity cost.
• C)avoidable cost.
• D)imputed cost.

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Definitions:

Open Positions

Vacancies in an organization that are available for new hires.

Personnel Movement

The activities related to the transfer, promotion, or turnover of employees within an organization.

Management Inventory

A collection or database of information related to an organization’s managerial resources and capabilities.

Professional or Technical Personnel

Workers with specialized knowledge, qualifications, or expertise used in their professions, such as engineers, lawyers, or IT specialists.