In making a decision to replace a machine,which of the following is not relevant?
A) the training that workers will need in order to use the new machine
B) the variable costs of operating the new machine
C) the variable costs of operating the old machine
D) the book value of the old machine

Question

Quizplus · Accepted Answer

The book value of the old machine is not relevant because it is a non-cash accounting entry that does not affect the actual cost or benefits of replacing the machine. The other options are relevant because they directly affect the cost and feasibility of replacing the machine.

In Making a Decision to Replace a Machine,which of the Following