Atlanta Motors Atlanta Motors is trying to decide whether it should keep its existing car washing machine or purchase a new one that has technological advantages (which translate into cost savings)over the existing machine.Information on each machine follows:
Refer to Atlanta Motors.The $4,000 of annual operating costs that are common to both the old and the new machine are an example of a(n)

Question

Atlanta Motors Atlanta Motors is trying to decide whether it should keep its existing car washing machine or purchase a new one that has technological advantages (which translate into cost savings)over the existing machine.Information on each machine follows:
 Refer to Atlanta Motors.The $4,000 of annual operating costs that are common to both the old and the new machine are an example of a(n)

Quizplus · Accepted Answer

The $4,000 of annual operating costs that are common to both the old and the new machine are an example of an irrelevant cost because they do not affect the decision to keep the existing machine or purchase a new one with technological advantages. The decision should be based on the technological advantages and cost savings offered by the new machine compared to the costs of purchasing and installing the new machine.

Atlanta Motors Atlanta Motors Is Trying to Decide Whether It