All of the following are relevant to the decision to replace equipment except the
A)cost of old equipment.
B)selling price of old equipment.
C)future maintenance costs of old equipment.
D)cost of new equipment.

Question

Quizplus · Accepted Answer

The cost of old equipment is a sunk cost, meaning it has already been incurred and cannot be recovered or changed by the decision to replace equipment. Therefore, it is not relevant to the decision-making process.

All of the Following Are Relevant to the Decision to Replace