Question

Which of the following is irrelevant when making a decision?
a. The expected increase in a contribution margin of one product line as a result of a decision to discontinue a separate unprofitable product line.
b. Fixed overhead costs that differ among alternatives.
c. The cost of further processing a product that could be sold as-is.
d. The cost of an asset that the company is considering replacing.

Answer 1

Answer:

d. The cost of an asset that the company is considering replacing.

Explanation:

Hello!The cost of something that is going to be replaced is no longer important or crucial in a decision since there is a change in the production strategy and if so it is because the problem was previously discussed, so the decision is already made and it is not necessary to rethink.

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