QUESTION 6 In making a Keep or Replace decision for an old machine, which of...
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Accounting
QUESTION 6 In making a Keep or Replace decision for an old machine, which of the following information is not relevant? A proceeds from selling the old machine B. book value of the old machine o purchase price of the new machine D. difference in operating costs between the old and new machines QUESTION 7 In a make or buy (outsourcing) decision, which one of the following considerations is a relevant qualitative facor? A. Make the part or buy it? Our president will be equally happy either way. OB. If we buy the part, we have to rely on other guys for a very important part, C. If we buy the part from outside, our fixed expenses will drop by half. D. We can resell unused part to either TrustMe or Believeme. Selling to TrustMe will enhance our corporate reputation more
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