A Customer Can Be Considered to Be a Cost Object
A customer can be considered to be a cost object, in the decision to add or drop a particular customer.
Econ Services has requested your services in determining the book values of the following assets, respectively. General repairs and maintenance for the automobile amounted to $4,000.Machinery maintenance included $2,000 for general upkeep.What are the book values for Auto and Machinery, respectively? A)$5,000; $55,000 B)$9,000; $57,000 C)$20,000; $150,000 D)$35,000; $245,000 E)$1,000; $53,000
Which of the following factors would be considered irrelevant when evaluating equipment replacement decisions? A)the book value of the old machine B)manufacturing costs C)overhead costs D)product production costs E)useful life of new equipment
Ignoring tax consequences, how should the gain or loss on disposal of an old machine be treated in an equipment replacement decision? A)used to defray installation costs of the new machine B)deducted from the accumulated amortization C)deducted from the cost of the new machine D)added to the accumulated amortization (or deducted from the cost)of the old machine E)It is irrelevant.