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This purpose of this essay is to identify the nature of relevant and irrelevant costs and their role in the decision making process.
This purpose of this essay is to identify the nature of relevant and irrelevant costs and their role in the decision making process. Draw from your personal as well as professional experiences to answer the questions below. Your essay should be 1-2 pages in length.The Seno article provides two examples of segments: 1) the market segment – Classical Music, Country Music, Rock Music; and 2) the product segment – physical CDs, digital music. What costs must be considered when determining the profitability of these various segments? Overall music sales have dropped drastically, although the digital music product segment has proven to be highly profitable amongst each of the market segments (much more so than the physical CD segment). Should music companies consider closing their physical CD divisions? Why or why not? What costs are relevant to this decision?
