Ask Question
BusinessBusiness
26 May, 01:20

The market value of equipment owned by a company is a sunk cost and should not be taken into account in deciding whether or not to replace the equipment. a. True b. False

+3
Answers (1)
  1. 26 May, 01:44
    0
    a. True

    Explanation:

    The sunk cost is the cost that is already incurred and not recovered in the future. Plus, it is also known as past cost.

    This cost is not useless at the time of decision-taking so it would be ignored.

    In the given question, the market value of the equipment is a sunk cost which determines that it will have no impact on the decision making so at the time of replacing the equipment, it would not be considered
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The market value of equipment owned by a company is a sunk cost and should not be taken into account in deciding whether or not to replace ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Identify a cost driver that may be used to assign each cost pool to each line of snowmobiles. Budgeted Costs Cost Driver Machine setup, indirect materials select a cost driver Inspections select a cost driver Tests select a cost driver Insurance,
Answers (1)
Art directors need an graduate degree? True or False
Answers (2)
What is income statement?
Answers (1)
While reviewing job applications, you notice that one candidate who looks qualified did not sign the consent form. What should you do? A. Check the candidate's references and backgrounds without a signed release. B.
Answers (1)
In the national income accounts, consumption expenditures include all of the following except household purchases of: A) durable goods. B) nondurable goods. C) new residential housing. D) services.
Answers (1)
New Questions in Business
Suggest one project that Bricks Construction could implement to address each key problem listed in the scenario (unemployment, Lack of housing and poor education and training)
Answers (1)
If aggregate expenditures increase by $12 billion and equilibrium gdp consequently increases by $48 billion, then the marginal propensity to save in the economy must be:
Answers (1)
Adam Company has 100 units costing $300 in beginning inventory. During the year, the company purchases 900 units for a total cost of $2,880. At the end of the year, a physical count reveals that 200 units remain in ending inventory.
Answers (2)
Which of the following is included in the statement of cash flows? a. Cash flows from investing activities b. Total changes in stockholders' equity c. Changes in retained earnings d. Total assets
Answers (1)
Which of the following companies would be best served by a plantwide overhead rate? Multiple Choice A company that manufactures few products and whose operations are labor intensive.
Answers (1)
Home » Business » The market value of equipment owned by a company is a sunk cost and should not be taken into account in deciding whether or not to replace the equipment. a. True b. False
Sign Up Forgot Password?