It may be a good decision to replace an asset before its original cost has been fully recovered through increased revenues or decreased costs.
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Sunk costs and future costs that do not differ between the alternatives may or may not be relevant in a decision.
A. 对
B. 错
A cost that is assigned to a product using activity-based costing may or may not be a relevant cost in a decision involving that product.
A. 对
B. 错
Opportunity costs represent costs that can be reduced by effective management of operations.
A. 对
B. 错
The book value of an old machine is always considered an opportunity cost in a decision.
A. 对
B. 错