Planet Design Services,Inc

question 94

Multiple Choice

Planet Design Services,Inc. ,is considering replacing a machine.The following data are available:

The difference between keeping the old machine and replacing the old machine is ________.

• A)$910,000 in favor of keeping the old machine
• B)$198,000 in favor of keeping the old machine
• C)$910,000 in favor of replacing the old machine
• D)$198,000 in favor of replacing the old machine

---

Definitions:

Indirect Labour Costs

Wages paid for labor that cannot be directly linked to specific products or services, such as maintenance staff or supervisors.

Work in Process

Items that are in the production process but not yet completed; a category of inventory.

Job Cost Sheets

Job cost sheets are detailed records used in cost accounting to track the expenses associated with a specific job or project.

Labour Time Sheet

A record detailing the amount of time an employee spends on various tasks, used for payroll and costing purposes.