Question

i only want to know what's Relevant or Irrelevant

David Jacobs the general manager of Paprika Software must decide when to release the new version of Paprika's spreadsheet package. Eagspread 20 Development of Easyspread 20 is complete, however, the diskettes, compact discs and user manuals have not yet been produced Data Table Easyspread 1.0 Lasyspread 2.0 Requirement 1. On the basis of financial considerations alone should Jacobs introduce Easyspread 20 on Begin by determining whether each hem is relevant or relevant for this decision Make a selection for each Variable cost per unit of the compact discuser manuals Development cost per unit Marketing and administratives per unit Total cost per unit Selling price Variable cost per unit of disces compact discs user manuals Development cost per unit Marketing and administrative cost per Operating income per un Development cost per un for each product equals the total costs of developing the soare proud divided the anticipated its over the life of the product Marketing and administrative costs are feed costs in 2017, incurred to support al marketing and administrative activities of Paprika Software Marketing and administrative costs are located to products on the basis of the budgeted revenues of each product. The preceding unit costs assume Easyspread 2 will be introduced on October 1, 2017 Choose from any drop down and then click Check Answer Print Done 3 parts

Answer 1

clasification of costs in relevant and irrelevant

COSTS	EASYSPREAD1.0	EASYSPREAD2.0
SELLING PRICE	RELEVANT	RELEVANT
VARIABLE COSTS	RELEVANT	RELEVANT
DEVELOPMENT COST	RELEVANT	RELEVANT
MARKETING AND ADMINISTRATION COST	IRRELEVANT	IRRELEVANT

NOTES;-

1. SELLING PRICE IS THE BASIS OF REVENUE THAT WE EARN FROM A PRODUCT SO IT IS A RELEVANT COST.

2. VARIABLE COST IS A COST INCURRED "FOR" THE PRODUCT SO IT IS ALSO A RELEVANT COST.

3. DEVELOPMENT COST IS A COST INCURRED FOR THE PRODUCT OVER THE LIFETIME TO DEVELOP THE SOFTWARE SO IT IS RELEVANT.

4. MARKETING AND ADMINISTRATION COST IS AN ALLOCATED COST WHICH HAS ALREADY BEN INCURRED SO IT IS NOT RELEVANT FOR DECISION MAKING