The manager at the Doughnut Factory is considering replacing the old doughnut machine with a newer model.The managerial accountant provided the following information:

Required:
Discuss whether the following costs are relevant or irrelevant costs:
Book value
Current disposal value on old machine
Cost of new machine

Question

The manager at the Doughnut Factory is considering replacing the old doughnut machine with a newer model.The managerial accountant provided the following information:
  
Required:
Discuss whether the following costs are relevant or irrelevant costs:
Book value
Current disposal value on old machine
Cost of new machine

Quizplus · Accepted Answer

The Answer of The manager at the Doughnut Factory is considering replacing the old doughnut machine with a newer model.The managerial accountant provided the following information:
  
Required:
Discuss whether the following costs are relevant or irrelevant costs:
Book value
Current disposal value on old machine
Cost of new machine

The Manager at the Doughnut Factory Is Considering Replacing the Old