________ is relevant in a decision to replace equipment.
A)Cost of old equipment
B)Book value of old equipment
C)Accumulated depreciation on old equipment
D)Future maintenance costs of old equipment

Question

Quizplus · Accepted Answer

Future maintenance costs of old equipment are relevant in a decision to replace equipment as they can impact the overall cost of keeping the old equipment in operation. The other options (cost of old equipment, book value of old equipment, and accumulated depreciation on old equipment) do not necessarily provide information about the ongoing costs associated with the old equipment.

________ Is Relevant in a Decision to Replace Equipment