Answer the following questions using the information below:
Victoria, Inc., is considering replacing a machine. The following data are available:

-For the decision to keep the old machine, the relevant costs of keeping the old machine total:
A)$120,000
B)$70,000
C)$94,000
D)$144,000

Question

Answer the following questions using the information below:
Victoria, Inc., is considering replacing a machine. The following data are available:
 
-For the decision to keep the old machine, the relevant costs of keeping the old machine total:
A)$120,000 
B)$70,000 
C)$94,000 
D)$144,000

Quizplus · Accepted Answer

The relevant costs of keeping the old machine include only the costs that will be incurred if the machine is kept, such as maintenance and operating costs, not sunk costs or costs that will be incurred regardless of the decision.

Answer the Following Questions Using the Information Below