Question

which of the following is irrelevant to replacement analysis.
(a) machine hour rate of the machine.
(b) maintenance cost of machine.
(c) purchase cost of the machine.
(d) operating cost of the machine.​

Answer 1

Explanation:

(c) purchase cost of the machine.

Hope its help..

Answer 2

Machine hour rate of the machine is irrelevant.

• It is one the fundamental analyses which determines whether or not to replace the current assets.
• Physical deterioration, changes in economic conditions, and quick technological advances all have the potential to shorten an asset's life span and make it outdated sooner than anticipated.
• Asset replacement presents the company with an economic opportunity.
• A machine hour rate, which has nothing to do with replacement analysis, is the hourly cost of running a certain machine in terms of manufacturing overheads.

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