8) The book value of old equipment is irrelevant in replacement decisions because. 6.66 Points O it represents a future cost that will not differ between the options of replacing or keeping the equipment. O it will be capitalized if the equipment is kept O it represents a future cost that will differ between the options of replacing or keeping the equipment it is a sunk cost 9) In analyzing whether to replace or keep existing equipment, the cost of the new equipment_ 6.66 Points O is irrelevant because it is a historical cost Both A and B O is relevant because equipment is always relevant O represents a future cost that will differ between the options of replacing or keeping the equipment 11) Which of the following is not an advantage of budgets? 6.66 Points O provide one-way communication channel aid managers in communicating objectives to units provide benchmarks to evaluate subsequent performance O compel managers to think ahead by formalizing their responsibilities for planning 12) In order for budgets to be accepted by all the affected employees, the following process should be used: 6.66 Points budgeting. autocratic O participative socialist authoritarian 13) The term used when managers overstate their budgeted costs or understate their budget revenues to create a budgeted profit level that is easier to achieve is_ 6.66 Points adverse budgeting hypothetical budgeting Obudgetary slack budgetary tightening