A Company Is Planning to Replace an Old Machine with a New

question 8

Multiple Choice

A company is planning to replace an old machine with a new one.Which of the following is a sunk cost?

• A) cost of the new machine
• B) sales price of the old machine
• C) future maintenance costs of the old machine
• D) original cost of the old machine

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Definitions:

Statistical Analyses

The application of statistical methods and techniques to analyze and interpret data in order to make informed decisions.

Divisional Departmentation

A method of organizing a company's structure where divisions are formed based on products, services, or markets, each with its own set of functions.

Highly Trained Individuals

Persons who have received extensive instruction and practice in a particular skill set or field of study.

External Demands

The requirements, pressures, or needs placed upon an organization or individual by external factors or entities.