Why is the book value of equipment irrelevant when considering the replacement of equipment?


Book value of the equipment is irrelevant in the decision because it is based on historical costs that cannot be changed.

Business

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Exporting firms in the United States typically

a. have less overall productivity. b. offer higher wages to workers. c. rely on an unskilled labor force. d. do not rely on capital.

Business

The Hermitage, a famous Russian art museum, was suffering financial difficulties as the result of lost funding and a decline in tourists. The decrease in visitors was blamed on a lack of awareness of the treasures contained in the museum. The Hermitage's director used a strategic alliance with IBM to create a website where people view some of the wonders of the Hermitage in an online virtual tour. The hope is that this sampling of paintings, sculptures, artifacts, etc. will encourage visitors to make a trip to the Hermitage and spend enough money there to cover operational costs. The Hermitage is a(n) ________ that uses online virtual tours to market itself worldwide.

A. assembly B. good C. charity D. idea E. service

Business

SEM is a procedure for estimating a series of dependence relationships among a set of concepts or constructs represented by multiple measured variables and incorporated in to an integrated model

Indicate whether the statement is true or false

Business

The operating cycle is the average days' inventory on hand minus the average number of days to collect credit sales

Indicate whether the statement is true or false

Business