An insurance office owns a large building. The sixth floor of this building currently houses its entire Human Resources Department. After carrying out a survey to see whether the sixth floor could be rented and for what price, the company must decide whether to split the Human Resources Department between currently unoccupied spaces on several floors and rent out the entire sixth floor or to leave things as they currently are. Which of the following should NOT be considered when deciding whether to rent out the sixth floor?

Question

Quizplus · Accepted Answer

The cost of the research into the feasibility of renting the sixth floor has already been incurred and cannot be changed. Therefore, it should not be a factor in the decision-making process going forward. The focus should be on the potential income from renting out the sixth floor, the cost of refurbishing the new space, and the impact on efficiency if the Human Resources Department is split between several spaces.

An Insurance Office Owns a Large Building