As part of a new product development, Butte Ltd has employed a building consultant to perform an
Question:
As part of a new product development, Butte Ltd has employed a building consultant to perform an initial survey. This initial survey has cost $\$ 40,000$. But there will be an ongoing need for her services if the company decides to proceed with the project. This work will be charged at a fixed rate of $\$ 20,000$ per annum.
What relevant cost should be included for the building consultants services in the first year when considering whether the project should proceed?
A. $\$ 0$
B. $\$ 20,000$
C. $\$ 40,000$
D. $\$ 60,000$
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