When Considering the Replacement of Old Equipment,which of the Following

question 140

Multiple Choice

When considering the replacement of old equipment,which of the following item is relevant?

• A) loss on disposal of old equipment
• B) book value of old equipment
• C) accumulated depreciation on old equipment
• D) future maintenance costs of old equipment

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Definitions:

Goods And Services

Goods and services constitute the output of an economy, where goods are tangible products and services are intangible activities that provide value to consumers.

Scarcity

The limited nature of society’s resources.

Trade-Offs

Situations where having more of one thing necessarily means having less of another because of limited resources.

Allocate

The process of distributing resources or goods among various uses or individuals based on specific criteria, such as need or merit.