A company is evaluating the replacement of the office copier. The costs of repairs made today on the existing copier should be considered in that evaluation.

Question

Quizplus · Accepted Answer

The costs of repairs made today on the existing copier are considered sunk costs and should not be considered in the evaluation of replacing the office copier. The decision should be based on future costs and benefits.

A Company Is Evaluating the Replacement of the Office Copier