1-Which of the following is an example of asunk costin a long term decision regarding the replacement of an existing piece of equipment with new equipment?

The cost of the new equipment

The additional working capital requirement for the new equipment

The current net book value of the equipment to be replaced

The disposal (salvage) value of the equipment to be replaced

2-A large favorable material price variance is:

a signal that an investigation of purchasing activities and/or standard prices is needed

a signal that an investigation of production activities is needed

proof that the production department is doing a good job

proof that the purchasing department is doing a good job