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:

Mental Functions

Essential cognitive processes that include reasoning, memory, attention, and language necessary for everyday functioning.

Hallucination

A perception in the absence of external stimulus that has qualities of real perception, often seen in psychiatric conditions.

Neurogenesis

The process of generating new neurons in the brain.

Plasticity

The brain's ability to change and adapt as a result of experience, either by reorganizing or by forming new connections between neurons.