222. Two years ago the manager of a large department store purchased new bar code scanners costing...
Question:
2–22. Two years ago the manager of a large department store purchased new bar code scanners costing $39,000. A salesperson recently tried to sell the manager a new computer-integrated checkout system for the store. The new system would save the store a substantial amount of money each year. The recently purchased scanners could be sold in the secondhand market for $19,000.
The store manager refused to listen to the salesperson, saying, “I just bought those scanners. I can’t get rid of them until I get my money’s worth out of them.” (a)
What type of cost is the cost of purchasing the old bar code scanners?
(b) What common behavioral tendency is the manager exhibiting?
Step by Step Answer:
Managerial Accounting Creating Value In A Dynamic Business Environment
ISBN: 9781259569562
11th Edition
Authors: Ronald W.Helton, David E. Platt