Author Question: Which of the following is true of depreciation cost? (Read 62 times)

lindiwe · **on:** Mar 6, 2021

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 · **Reply #1 on:** Mar 6, 2021

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