Which of the following is the least likely to be a relevant item in deciding whether to replace an old machine?
A)acquisition cost of the old machine
B)outlay to be made for the new machine
C)annual savings to be enjoyed on the new machine
D)life of the new machine

Question

Quizplus · Accepted Answer

The acquisition cost of the old machine is a sunk cost and is not relevant in the decision-making process. It is important to consider the outlay for the new machine, the annual savings on the new machine, and the life of the new machine.

Which of the Following Is the Least Likely to Be