Which of the following costs is NOT relevant to an equipment replacement decision?
A) cost of new equipment
B) operating cost of new equipment
C) operating cost of old equipment(several years left)
D) cost of old equipment

Question

Quizplus · Accepted Answer

The cost of old equipment is not relevant to the decision of replacing it with new equipment. The focus should be on the costs related to the new equipment and the operating costs of both the old and new equipment. The fact that the old equipment has several years left does not make its operating cost relevant to the decision as the focus is on the future costs and benefits of replacing it.

Which of the Following Costs Is NOT Relevant to an Equipment