Which of the following costs is not relevant to the decision whether to replace an old computer with a new one?
A) The cost of the new computer.
B) The cost of the old computer.
C) The cost of a service plan on the new computer.
D) The cost to repair the old computer if a new computer is not purchaseD.
The cost of the old computer is a sunk cost, therefore it is not relevant to the decision.

Question

Quizplus · Accepted Answer

The cost of the old computer is a sunk cost, therefore it is not relevant to the decision. The cost of the new computer, the cost of a service plan on the new computer, and the cost to repair the old computer if a new computer is not purchased are all relevant costs that should be considered in the decision-making process.

Which of the Following Costs Is Not Relevant to the Decision