A manager refuses to replace an existing asset even though an extensive analysis indicates that replacement is desirable.One possible explanation for the manager's action is that:
A) A financial loss may be reported in the current period if the asset is replaced.
B) The manager is concerned that his or her superior may think that the original asset purchase was a mistake on the part of the manager.
C) The manager expects to be promoted or transferred in the near future and is concerned primarily about short-term performance.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

Each option provided (A, B, and C) offers a plausible explanation for why a manager might resist replacing an asset despite analysis suggesting it would be beneficial. These reasons include potential short-term financial loss, concern over perceived past mistakes, and prioritizing short-term performance due to expected career changes.

A Manager Refuses to Replace an Existing Asset Even Though