Freestone Company Is Considering Renting Machine Y to Replace Machine

question 12

Multiple Choice

Freestone Company is considering renting Machine Y to replace Machine X.It is expected that Y will waste less direct materials than does X.If Y is rented,X will be sold on the open market.For this decision,which of the following factors is (are) relevant?
I.Cost of direct materials used
II.Resale value of Machine X

• A)Only I
• B)Only II
• C)Both I and II
• D)Neither I nor II

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Definitions:

External Validity

The extent to which the results of a study can be generalized to other situations and to other people.

Random Error

Variability in data that arises from unpredictable fluctuations and inconsistencies in the measurement process.

Neuroscience Perspective

An approach that explores the structure and function of the nervous system, including the brain, to understand behavior, thought, and emotion.

Aggressive Acts

Acts characterized by hostility or violence towards others.