Asset replacement decisions involve: Facility-level costs are not involved in de
ID: 2451366 • Letter: A
Question
Asset replacement decisions involve:
Facility-level costs are not involved in decisions to eliminate a segment of a business. ttrue or false
One of the potential dangers from outsourcing is the possible occurrence of low-ball pricing. true or false
Select the incorrect statement concerning opportunity costs.
a) Opportunity costs are relevant costs.
b) Opportunity costs are cumulative.
c) Opportunity costs are future oriented.
d) Opportunity costs are not recorded in the books.
Asset replacement decisions involve:
a) choices between continuing using existing materials or replacing them with less expensive materials.
b) choices between closing down or continuing to operate a segment of a business.
c) choices between continuing operating existing equipment or replacing it with new equipment.
d) None of these.
Explanation / Answer
1) Facility-level costs are not involved in decisions to eliminate a segment of a business.
Answer:- False.
2) One of the potential dangers from outsourcing is the possible occurrence of low-ball pricing.
Answer :- True.
3) b) Opportunity costs are cumulative. (This is the incorrect statement concerning opportunity costs.)
4) Asset replacement decisions involve:
Answer:- c) choices between continuing operating existing equipment or replacing it with new equipment.