When replacing an old asset with a new one the original purc

When replacing an old asset with a new one, the original purchase price of the old asset represents a(n) relevant or diffential or opportunity or sunk cost.

Solution

SUNK COST

When replacing an old asset with a new one, the original purchase price of the old asset represents sunk cost

Relevant cost is a managerial accounting term that describes avoidable costs that are incurred when making business decisions

Differential cost is difference between the cost of two alternative decisions

Opportunity cost refers to a benefit that a person could have received, but gave up to take another course of action.