Financial and Non Financial factors to consider when discontinuing a product

Hi everyone..

I have been reading the AAT specimen and have found it hard to discover written down anywhere the financial and non financial factors to consider when discontinuing a product. Would anybody be able to help?

Any points would be appreciated.


  • CornishPixie
    CornishPixie Registered, MAAT, AATQB, AAT Licensed Accountant Posts: 117 Dedicated contributor 🌟 🐵 🌟
    The financial factors include the costs etc. Non financial factors are those which can affect the financial decision and should always be taken into account when the decision is made. For example, a full closure of a business will result in job losses - as could a part of a business being outsourced. This could lead to low staff morale and have a snowballing effect upon the community if less money is available to spend in that community. Don't forget that many other business could be suppliers of that original company and they will all be affected by a decision. There are also ethical issues - for example, if the company outsources to another country, what about fair pay and workplace safety. Hope that helps.
  • Nick4712
    Nick4712 Registered Posts: 11
    Thank you @CornishPixie !!
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