Delaney Company Is Considering Replacing Equipment Which Originally Cost $600,000

question 94

Multiple Choice

Delaney Company is considering replacing equipment which originally cost $600,000 and which has $420,000 accumulated depreciation to date.A new machine will cost $790,000.What is the sunk cost in this situation?

• A) $370,000
• B) $790,000
• C) $180,000
• D) $190,000

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Definitions:

Brand Awareness

How well consumers know and can identify the specific characteristics or branding of a certain brand's offerings.

BCG Matrix

A strategic planning tool that classifies a company’s business units or products into four categories (Stars, Question Marks, Cash Cows, Dogs) based on market growth and market share.

Cash Cows

Products or business units that generate significantly more money than they consume, providing a steady flow of profit to the company.