When making keep or replace decisions, management should consider the:
- A. sale of the existing equipment
- B. variable manufacturing cost of the new equipment
- E. book value of the existing equipment
What is Book Keeping?
This refers to the record that is kept about existing equipment or goods that states their current conditions.
Hence, we can see that it is with the knowledge of book keeping and the information inside that would guide to make the best decisions about keeping or replacing them and options A, B and E are correct.
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