Which of the following is true of depreciation cost?

[lindiwe]

Question 1

Which of the following is an irrelevant cost when considering where to drop a customer?
◦ cost of goods sold
◦ marketing support
◦ depreciation
◦ sales order and delivery processing

Question 2

Which of the following is true of depreciation cost?
◦ Depreciation cost on equipment is irrelevant in decision making because depreciation on equipment that has already been purchased is a past cost.
◦ Depreciation cost on equipment is relevant in decision making because depreciation on equipment that has already been purchased is an opportunity cost.
◦ Depreciation cost on equipment is irrelevant in decision making because there is no cash transaction.
◦ Depreciation cost on equipment is irrelevant in decision making because depreciation on equipment that has already been purchased is an opportunity cost.

[sailorcrescent]

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Only 39% of students answer this correctly

[lindiwe]

Thanks for the timely response, appreciate it

[Alyson.hiatt@yahoo.com]

Excellent