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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.

	Financial	Nonfinancial	Relevant	Irrelevant
Amount paid for current printers
Resale value of current printers
Cost of new printer
Operating costs of current printers
Operating costs of new printer
Employee morale

Step by step solution

01

Meaning of Employee

The term employee refers to the human asset of an organization that renders its services and skills to the organization to accomplishcommon goals stated by theupper management. Employees get salaries, commissions, and other benefits for their services

02

The meaning  of Financial information

The information or data associated with the economic transactions of a business concern is termed as financial information. Such type of information is recorded inthe books of accounts

03

The meaning  of non-financial information

Non-financial information refers to the qualitative information which cannot be measured in terms of money but helps theadministration to make valuable decisions associated withbusiness operations.

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