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

Question

Quizplus · Accepted Answer

The book value of the old machine is not relevant in equipment replacement decisions because it is a historical cost and does not reflect the current value or potential benefits of replacing the equipment. The other factors listed (manufacturing costs, overhead costs, product production costs, and useful life of new equipment) are relevant in evaluating equipment replacement decisions.

Which of the Following Factors Would Be Considered Irrelevant When