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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Relevant cost question
Salary to be paid to a market researcher who will oversee the development of a new product. this is a new post to be created especially for the new product but the 12,000 salary will be fixed cost. is this cost relevant to the decision to proceed with the development of the product.
the text answer is RELEVANT
I answered IRRELEVANT, arguing that this was a committed cost.
what is wrong with my argument?
thanks
Since this is a new post to be created especially for the new product, it is a cost that will only occur if we do go ahead with the new product.
It is not committed – it is ‘to be created’. If we do not do the new product then we will not create it.