Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25

- Free Preparation Discussions

IMANET CMA Exam - Topic 6 Question 26 Discussion

Actual exam question for IMANET's CMA exam

Question #: 26
Topic #: 6

[All CMA Questions]

In equipment replacement decisions, which one of the following does not affect the decision-making process?

ACurrent disposal price of the old equipment.

BOperating costs of the old equipment.

COriginal fair value of the old equipment.

DOperating costs of the new equipment.

Show Suggested Answer

Suggested Answer: C

All relevant costs should be considered when evaluating an equipment replacement decision. 'These include the iniflal investment in the new equipment, any required investment in working capital, the disposal price, of the new equipment, the disposal price of the old equipment, the operating costs of the old equipment, and the operating costs of the new equipment. The original cost or fair value of the old equipment is a sunk cost and is irrelevant to future decisions.

by Roxane at May 06, 2022, 02:30 AM

Limited Time Offer

25%

Off

Get Premium CMA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Ashlyn

10 months ago

I thought the original value would play a role, but I guess not!

upvoted 0 times

...

Daisy

11 months ago

Operating costs are key, but C? Nah.

upvoted 0 times

...

Chantell

11 months ago

Wait, are you sure about C? Seems important.

upvoted 0 times

...

Paz

11 months ago

Totally agree, C is irrelevant!

upvoted 0 times

...

Brandee

11 months ago

C doesn't really matter for the decision.

upvoted 0 times

...

Jeanice

11 months ago

I'm a bit uncertain, but I think operating costs of the new equipment are definitely relevant to the decision-making process.

upvoted 0 times

...

Kati

11 months ago

I feel like we had a practice question similar to this, and I think it was about how past values shouldn't influence current decisions.

upvoted 0 times

...

Nathalie

11 months ago

I think the original fair value of the old equipment doesn't really impact the decision, since it's more about current costs and benefits.

upvoted 0 times

...

Gail

11 months ago

I remember we discussed how the current disposal price and operating costs are crucial, but I'm not sure about the original fair value.

upvoted 0 times

...

Cherelle

11 months ago

I'm a bit unsure about this one. I think I'll double-check the contact's information in All Subscribers and the Demographics table to troubleshoot the issue.

upvoted 0 times

...

Alyce

11 months ago

This is a good question to test our medical knowledge. I'm pretty confident the answer is A, resident, since that's the term used for physicians who have completed their internship and are continuing their specialized training.

upvoted 0 times

...

Broderick

11 months ago

I'm a bit confused by this question. The examples all seem quite technical and specific, rather than general applications. I'm not entirely sure which one best fits the description of a "typical" closed-loop system. I'll have to think this through carefully.

upvoted 0 times

...

Winfred

11 months ago

I'm pretty confident that deferring sharing rule calculation and disabling Apex classes are the two steps I should take here.

upvoted 0 times

...

Leigha

12 months ago

I think the endpoint has to point to the Activiti Engine REST webapp for API access, but I'm not entirely sure.

upvoted 0 times

...

Frederick

12 months ago

The key here is to remember that arrays are indexed starting from 0, so C is the right answer. I've got this!

upvoted 0 times

...

Jordan

12 months ago

Improved user satisfaction seems like the most obvious direct benefit, so I'll probably rule that one out. The other options seem more subtle.

upvoted 0 times

...