Chapter 25, Problem 1TI

Doherty Company is considering replacing the individual printers each employee in the corporate office currently uses with a network printer located in a central area. The network printer is more efficient and would, therefore, cost less to operate than the individual printers. However, most of the office staff think having to use a centralized printer would be inconvenient. They prefer to have individual printers located at each desk. Identify the following information as financial or nonfinancial and relevant or irrelevant. The first item has been completed as an example.

Amount paid for current printers

To determine

Identify the information as financial or nonfinancial and relevant or irrelevant.

Explanation of Solution

Irrelevant information: Irrelevant information does not affect the decision making since they are not in the future or do not differ between alternatives.

Identify the information as financial or nonfinancial and relevant or irrelevant:

Information	Financial	Nonfinancial	Relevant	Irrelevant
Amount paid for current printers	✓			✓

Table (1)