A Manager Refuses to Replace an Existing Asset Even Though

Multiple Choice

A manager refuses to replace an existing asset even though an extensive analysis indicates that replacement is desirable.One possible explanation for the manager's action is that:

A) A financial loss may be reported in the current period if the asset is replaced.
B) The manager is concerned that his or her superior may think that the original asset purchase was a mistake on the part of the manager.
C) The manager expects to be promoted or transferred in the near future and is concerned primarily about short-term performance.
D) All of these answers are correct.