Which costs are relevant for equipment replacement decisions?
A) Unit-level costs
B) Batch-level costs
C) Product-level costs
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

All of these costs are relevant in equipment replacement decisions because the decision should consider all costs associated with the equipment, including unit-level costs (related to the specific equipment being replaced), batch-level costs (related to the production runs that use the equipment), and product-level costs (related to the products produced using the equipment). Therefore, the best choice is D.

Which Costs Are Relevant for Equipment Replacement Decisions