Lakeland University is determining whether it should keep or replace all of the computers in each of its computer labs. Which of the following quotes below from Lakeland's CFO is correct as to how Lakeland should analyze costs in this situation.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
icon
Related questions
Question
Lakeland University is determining whether it should keep or replace all of the computers in each of
Its computer labs. Which of the following quotes below from Lakeland's CFO is correct as to how
Lakeland should analyze costs in this situation.
Multiple Cholce
If we spend the money this year to replace all our computers, then we wouldn'r
have enough funds to refurnish one of our dorm buildings. However, computers
and furniture are two different types of assets, so we shouldn't take this
opportunity cost into consideration when making our decision."
"We paid a lot of money for our current computers. I know they are not meeting
the needs for our students, but the large price we paid for them needs to factor
into our decision."
"The periodic depreciation expense on the current computers is much lower
than normal. We should take this into consideration when making our decision."
"We're able to take advantage of a great deal now by purchasing computers
from a company going out of business. I don't think we'l have this opportunity
again in the future. We should take this into consideration when making our
decision."
Transcribed Image Text:Lakeland University is determining whether it should keep or replace all of the computers in each of Its computer labs. Which of the following quotes below from Lakeland's CFO is correct as to how Lakeland should analyze costs in this situation. Multiple Cholce If we spend the money this year to replace all our computers, then we wouldn'r have enough funds to refurnish one of our dorm buildings. However, computers and furniture are two different types of assets, so we shouldn't take this opportunity cost into consideration when making our decision." "We paid a lot of money for our current computers. I know they are not meeting the needs for our students, but the large price we paid for them needs to factor into our decision." "The periodic depreciation expense on the current computers is much lower than normal. We should take this into consideration when making our decision." "We're able to take advantage of a great deal now by purchasing computers from a company going out of business. I don't think we'l have this opportunity again in the future. We should take this into consideration when making our decision."
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles Of Marketing
Principles Of Marketing
Marketing
ISBN:
9780134492513
Author:
Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:
Pearson Higher Education,
Marketing
Marketing
Marketing
ISBN:
9781259924040
Author:
Roger A. Kerin, Steven W. Hartley
Publisher:
McGraw-Hill Education
Foundations of Business (MindTap Course List)
Foundations of Business (MindTap Course List)
Marketing
ISBN:
9781337386920
Author:
William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:
Cengage Learning
Marketing: An Introduction (13th Edition)
Marketing: An Introduction (13th Edition)
Marketing
ISBN:
9780134149530
Author:
Gary Armstrong, Philip Kotler
Publisher:
PEARSON
MKTG 12:STUDENT ED.-TEXT
MKTG 12:STUDENT ED.-TEXT
Marketing
ISBN:
9781337407595
Author:
Lamb
Publisher:
Cengage
Contemporary Marketing
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning