The book value of an old machine that is no longer in use is:
A)relevant because it is a current cost.
B)irrelevant because it is a past,or sunk cost.
C)the original cost plus accumulated depreciation.
D)the original cost multiplied by accumulated depreciation.
E)the original cost divided by accumulated depreciation.

Question

Quizplus · Accepted Answer

The book value of an old machine that is no longer in use is considered irrelevant for decision-making purposes because it represents a sunk cost, which is a past cost that cannot be recovered or changed by any current or future action.

The Book Value of an Old Machine That Is No