Relevant costing. The company is considering switching one of their storage buildings to manufacturing. Advise the company on what costs they need to take into account when making this decision (relevant/irrelevant, opportunity/sunk costs) and what qualitative factors they need to recognise to make informed decisions.

1. Define relevant/irrelevant costs

2. Identify 5 relevant/irrelevant costs for the present decision. Justify your answer.

3. Discuss 3 qualitative factors that need to be taken into account when making this decision

4. Discuss the importance of recognising qualitative factors to inform decisions