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.

Question

Quizplus · Accepted Answer

The cost of the old computer is not relevant to the decision whether to replace it with a new one, as it is a sunk cost and cannot be recovered regardless of the decision made. 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 one is not purchased are all relevant costs that should be considered when making the decision.

Which of the Following Costs Is Not Relevant to the Decision