The class is called Managerial Accounting

This week's topic of discussion is: Managerial Accounting and Job-Order Costing

Here is the question:

Let's look "beyond accounting" for a moment. From a business perspective, why should there be "high scrutiny" before the decision is made to dispose of an asset - even if it is old and not "state of the art?" As a hint, think about using an old car vs. buying a new one that might be a bit more fuel efficient. Is the extra monthly payments really going to offset the gas guzzling old vehicle? Why do managers need to look at the decision from a higher level?