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A Company Is Deciding Whether to Purchase Production Equipment Which

Question 172

Multiple Choice

A company is deciding whether to purchase production equipment which can produce units more quickly than the current equipment. Which of the following costs would be relevant to its decision?


A) The original purchase price of the current machinery
B) The additional labor required to run the new equipment
C) The accumulative repairs costs of the current machinery over the years
D) The cost of raw materials

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