The cost such as dispose value of an old machine is $6000 is classified as _____________?
Correct answer: A. relevantSearch Public Records
- A. relevantSearch Public Records
- B. depreciated cost
- C. salvages
- D. irrelevant
Explanation
The disposal or salvage value of an old machine affects the comparison between alternatives, so it is relevant to a replacement decision. “Salvages” is not the proper classification, although salvage value is the underlying term.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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