The original cost of a machine the company already owns is irrelevant in decision making. Explain why

Question:

The original cost of a machine the company already owns is irrelevant in decision making. Explain why this is so.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Introduction to Managerial Accounting

ISBN: 978-1259105708

5th Canadian edition

Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan

See More Books

Question Posted: Oct 29, 2019 11:09 AM

See More Questions

Singapore Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $60,000, the accumulated...
Singapore Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $60,000, the accumulated...
A manager is faced with deciding whether to replace machine A or machine B. The original cost of machine A was $20,000 and that of machine B was $30,000. Because the two cost figures differ, they are...
Write a short report in which you assess the impact of one piece of health and safety legislation in an organisation of your choice.
After the base alternative has been identified, the first comparison to be made in an incremental analysis should be which of the following? (a) C B (b) A B (c) D E (d) C D (e) D C
Direct marketings strength is its focus on customers. Explain how this market focus influences the development of direct marketing strategy.
For Problem 6a, determine the following: a. The range of feasibility for each constraint b. The range of optimality for the coefficients of the objective function LO.1
Nachman Industries just paid a dividend of D0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The...
1. The identification, development and evaluation of business ideas 1.1 James is a very accomplished golfer and has many qualifications in product design. He currently works in the finance department...
Mission statements are critical to a successful marketing organization versus Mission statments rarely provide useful marketing value. What is your interpretation of this statements?
For each of the following U.S. investors, state whether the investor has a tax reason to (i) prefer the companys payout to be in the form of dividends, (ii) prefer payout to be in the form of...
Why is the NPV method of making capital budgeting decisions superior to other methods, such as the payback and SRR methods?
What is the present value of an annuity due consisting of semiannual payments of $1000 for 25 years, if money can earn: a. 6% compounded semiannually? b. 8% compounded semiannually?
The combined weight of the load and the platform is 200 lb, with the center of gravity located at G. If a couple moment of M = 900 lb ft is applied to link AB, determine the angular velocity of links...
Due In: 06:48:23 Questions Question 1 (4) O Question 2 (8) Question 2 of 2 A company sold $150,000 bonds and set up a sinking fund that was earning 8.5% compounded semi-annually to retire the bonds...
Find the point on the graph of f(x) = x which is closest to the point (6, 27). How close is the closest point?
Due to a crash at a railroad crossing, an overpass is to be constructed on an existing level highway. the existing highway has a design speed of 50 mi/h. The overpass structure is to be level,...
Finding Bone Density Scores. In Exercises 37-40 assume that a randomly selected subject is given a bone density test. Bone density test scores are normally distributed with a mean of 0 and a standard...
The point (/2, 5) lies on the curve for which dy/dx = 4 sin(2x /2). a. Find the equation of the curve. b. Find the equation of the normal to the curve at the point where x = /3.
1A. If the researcher is concerned about the number of variables, the nature of the analysis, and completion rates, then, he/she is at which stage of the sampling design process (Figure 11.1 in the...
A rack rate is best understood as the price of a hotels a. Rooms when no discount is offered. b. Rooms when discounts are offered. c. Most expensive room types. d. Least expensive room types.
In the short run, when room supply is held constant a. A decrease in demand for rooms typically leads to a decreased selling price. b. A decrease in demand for rooms typically leads to an increase in...
Bill OLeary could see both sides of the issue. As the general manager of the 500unit Plazamar Hotel, he knew how important it was to remember that both members of his room revenue management team now...
If the auditor believes that the financial statements prepared on the basis of the entity's income tax are not adequately titled, the auditor should : A)Issue a resignation of opinion. B)Explain the...
initial stock offering to the public. This REIT specializes in the acquisition and management of warehouses. Your firm, Blue Street Advisors, is an investment management company that is considering...
Question 3 You have been hired to run a pension fund for Mackay Inc, a small manufacturing firm. The firm currently has Gh5 million in the fund and expects to have cash inflows of $2 million a year...

The original cost of a machine the company already owns is irrelevant in decision making. Explain why

Question:

Step by Step Answer:

The original cost of a machine ...View the full answer

Introduction to Managerial Accounting

Students also viewed these Business questions