When deciding to retain or replace equipment, the book value of the old equipment is considered to be a

Group of answer choices

relevant cost.

sunk cost.

semi-relevant cost.

variable cost.

The decision rule for a sell or process further decision is:

Group of answer choices

if incremental revenue is greater than incremental costs, then process further and then sell

if there is an opportunity cost, then ignore it.

if lost contribution margin is greater than any fixed costs that can be avoided/saved , then replace equipment

if incremental revenue is less than incremental costs, then process further and then sell.

How is opportunity cost in a make-or-buy situation, handled?

Group of answer choices

It is added to the total make column.

It is subtracted from the total make column.

It is subtracted from the total buy column.

It is added to the total buy column.

The lost potential benefit that could have been obtained from following an alternative course of action is defined as

Group of answer choices

opportunity cost

sunk cost

relevant cost

financial cost