The book value of old equipment is NOT a relevant cost in an equipment replacement decision.

Name: The book value of old equipment is NOT a relevant cost in an equipment replacement decision.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

The book value of old equipment is a sunk cost, meaning it has already been incurred and cannot be recovered. In making an equipment replacement decision, only future costs and benefits should be considered.

The Book Value of Old Equipment Is NOT a Relevant