A) A cost-benefit analysis is a systematic process that businesses use to analyze which decisions to make and which to for go B) Some consultants or analysts also build models to assign a dollar C) The cost-benefit analyst sums the potential rewards expected from a situation or action
A) Some consultants or analysts also build models to assign a dollar. B) Prudent managers conduct a cost-benefit analysis to evaluate all the potential costs and revenues that a company might generate from the project. C) The outcome of the analysis will determine whether the project is financially feasible or if the company should pursue another project.
A) The decision-making process. B) Opportunity costs are alternative benefits that could have been realized when choosing one alternative over another. C) The outcome of the analysis will determine whether the project is financially feasible or if the company should pursue another project.
A) Opportunity costs are alternative benefits that could have been realized when choosing one alternative over another. B) If so, then the rational decision is to go forward with the project. C) Is a systematic process that businesses use to analyze which decisions to make and which to forgo.
A) Cost-benefitfit analysis. B) The results may be called into question. C) There is no single universally accepted method of performing a cost-benefit analysis.
A) To decide whether to renovate a company's website" B) An example of a cost-benefit analysis purpose could be "to determine whether to expand to increase market share C) The first step of a cost-benefit analysis
A) Including at the point that a company should assess whether it is equipped to perform the analysis B) A company may realize it does not have the technical staff required to perform an adequate C) Including the timeline, resources needed, constraints, personnel required, or evaluation techniques
A) Whether the expenses are reoccurring or a one-time cost. B) To determine the project costs. C) Opportunity costs such as alternative investments
A) Performing sensitivity analysis to understand how slight changes in estimates may impact outcomes. B) Indirect costs might include electricity, overhead costs from management, rent, utilities. C) Opportunity costs such as alternative investments, Or buying a plant versus building one.
A) Indirect costs might include electricity, overhead costs from management, rent, utilities. B) If they are fixed, consider what step costs and relevant range will impact those costs. C) Opportunity costs such as alternative investments, Or buying a plant versus building one.
A) Taking special care not to underestimate costs or overestimate benefits. B) Higher An analyst or project manager should apply a monetary measurement to all of the items on the cost-benefit listrevenue and sales from increased production or new product. C) An analyst or project manager should apply a monetary measuremenot to all of the items on the cost-benefit list.
A) Utilizing various discount rates depending on various situations B) The project has a net benefit to the company C) Calculating cost-benefit analysis for multiple options
A) Level-setting different options by calculating the cost-benefit ratio. B) Applying discount rates to determine the net present value of cashflows. C) Calculating cost-benefit analysis for multiple options.
A) Applying discount rates to determine the net present value of cashflows B) Level-setting different options by calculating the cost-benefit ratio C) Summarizes the costs, benefits, net impact, and how the finding ultimately support the original purpose of the analysis
A) A conservative approach with a conscious effort to avoid any subjective tendencies B) Higher revenue and sales from increased production or new product C) Analysts should also be aware of the challenges in determining both explicit and implicit benefits
A) Explicit benefits B) About increasing employee satisfaction C) Implicit costs
A) There is no formula to calculate the financial impact of happier workers. B) Implicit costs C) Explicit benefits
A) Alternative rate of return that could be earned if the project had never been done. B) As inflation, interest rates, varying cash flows, and the present value of money. C) A conservative approach with a conscious effort to avoid any subjective tendencies.
A) The project needs to earn at least more than the rate of return that could be earned elsewhere or the discount rate B) There are a significant amount of forecasts built into the models C) Future revenue or sales, alternative rates of return, expected costs, and expected future cash flows
A) Management leverages the findings of a cost-benefit. B) There are more benefits to a project or if it is more detrimental to a company. C) The main goal of cost-benefit analysis is to determine whether it is worth undertaking a project or task.
A) Depending on the specific investment or project being evaluated, one may need to discount the time value of cash flows using net present value calculations B) A conservative approach with a conscious effort to avoid any subjective tendencies C) Management leverages the findings of a cost-benefit
A) The project needs to earn at least more than the rate of return that could be earned elsewhere or the discount rate B) A conservative approach with a conscious effort to avoid any subjective tendencies C) If the cost-benefit analysis of doing a cost-benefit analysis is positive, you should do it!
A) The externality Individual or an organization B) An externality is a cost or benefit caused by a producer that is not financially incurred or received by that producer C) The costs and benefits can be both private
A) The costs and benefits can be both private B) Such as The costs and benefits can be both privatenatural resources or public health C) Implicit costs
A) The costs and benefits can be both Almost all externalities are considered to be technical externalitiesprivate B) A negative externality C) A conservative approach with a conscious effort to avoid any subjective tendencies
A) Subjective tendencies B) The costs and benefits can be both private C) A positive externality
A) Apositive Externality B) Almost all externalities are considered to be technical externalities C) A third party that is not directly related to the production or consumption of that good or service.
A) The costs and benefits can be both private B) But the price of consumption does not include the externalities. C) Deficiencies
A) People advocate for government intervention B) Externalities through taxation and regulation C) Deficiencies
A) Pollution B) Research and development C) Companies benefits |