The cash disposal value of old equipment is considered to be a (an)
A) irrelevant cost.
B) avoidable cost.
C) sunk cost.
D) relevant cost.

Question

Quizplus · Accepted Answer

The cash disposal value of old equipment is relevant because it affects the decision regarding whether to replace the equipment or keep using it. The cash disposal value represents the amount that can be recovered by selling or scrapping the equipment, and this value should be compared to the cost of a new piece of equipment to make an informed decision.

The Cash Disposal Value of Old Equipment Is Considered to Be