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4 years ago

What key role those a cost-benefit analysis play? How is it used?

Business

1 answer:

ExtremeBDS [4]4 years ago

8 0

Answer:

Computing, Analysing & Comparing : 'Benefit' of projects per unit 'Cost' incurred.

Explanation:

Cost Benefit Analysis is used to ascertain Benefit of a decision with regards to its cost. The decisions might be various : investing in a project, hiring a labour etc. The cost & benefits of the decision are measured in 'net present value', as costs / benefits (specially) might be scattered over a long period of time, & they need to be adjusted for price change then.

Benefit - Cost Ratio (as per Cost Benefit Analysis) : =

<u>Total Benefit in Net present value</u>

Total Cost in Net present value

If a project / decision has higher Benefit - Cost ratio, it provides more benefit per unit of cost & vice versa in case of low Benefit - Cost ratio. A project with high Benefit - Cost ratio would be preferred over the one having lower benefit - cost ratio.

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Della the sales manager just informed her sales team that all sales in March will earn extra 5% commission the

Sever21 [200]

Della, the sales manager, just informed her sales team that all sales in March will earn an extra 5 percent commission. The team gets right to work, being motivated by a extrinsic reward.

<h3>What is extrinsic reward?</h3>

Employees typically receive extrinsic rewards in the form of monetary or tangible compensation, such as raises, bonuses, and benefits. They are extrinsic because they are unrelated to the completion of the work and are managed by people other than the employee.

Extrinsic rewards include monetary bonuses and additional days off from work. They are under the control of people other than you. Intrinsic rewards are intangible, psychological rewards that come from completing a task well.

Extrinsic motivation uses rewards or other incentives, such as praise, fame, or money, to motivate people to do certain things. Unlike intrinsic motivation, this type of motivation is driven by external factors. Extrinsic motivation is demonstrated by being paid to do a job.

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6 0

2 years ago

Which of the following is most consistent with a relationship marketing strategy?

aleksklad [387]

Answer:

Option C

Explanation:

Relationship marketing refers to the strategy aimed at encouraging customer satisfaction, communication, and tight-term commitment. It is built to create strong customer relationships by presenting them with content that is specifically relevant to their desires and needs, and by encouraging open lines of communication.

Relationship marketing involves building and preserving interaction with customers over period via online marketing or other techniques which improve their chances of coming back to your company in the future. In particular, regular customers are essential because they are major sources of new clients and reviews and are also inclined to make repeated purchases.

4 0

4 years ago

A person puts $100.00 into a savings account with 2.4% annual interest rate (computed continuously). The value of such an invest

andre [41]

Answer:

It will take up to 3 years for the total interest to exceed $5.00

Explanation:

The future value of an investment whose interest is compounded continuously can be expressed as;

A=P e^(rt)

where;

A=future value of the investment

P=initial value of investment

r=annual interest rate

t=number of years

In our case;

A=Initial value+interest=(100+5)=$105

P=$100

r=2.4%=2.4/100=0.024

t=unknown

replacing;

105=100 e^(0.024 t)

e^(0.024 t)=105/100

e^(0.024 t)=1.05

ln {e^(0.024t)}=ln 1.05

0.024 t ln e=ln 1.05

but ln e=1

0.024 t=ln 1.05

t=ln 1.05/0.024

t=2.03 years rounded up=3 year

It will take up to 3 years for the total interest to exceed $5.00

4 0

4 years ago

You are a newspaper publisher. You are in the middle of a one-year factory rental contract that requires you to pay $500,000 per

professor190 [17]

If sales fall by 20 % from 1,000,000 papers per month to 800,000 papers per month, the AFC per paper will <u>rise </u>from <u>$1.5</u> per paper to <u>$1.875</u> per paper.

Since the marginal printing cost is $0.35 per paper and the marginal delivary cost is $0.10 per paper.It will not be affected with a decrease in the sales of paper per month

If the sales decrease from 1,000,000 to 800,000 then for break-even point, the minimum price charged will increase from $1.95 per paper to $2.325 per paper

<h3>How to calculate the value?</h3>

Total fixed cost = 500,000+ 1,000,000

=$ 1,500,000 per month

If the sales of paper falls from 1,000,000 per month to 800,000 paper per month.

AFC= total cost / quantity of paper

if salesis 1000,000

AFC=1,500,000/1,000,000

=$1.5 per paper

If sales is 800,000

AFC=1,500,000/800,000

=$1.875 per paper

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4 0

1 year ago

Consider the information about the economy of Pakistan. Note that the currency of Pakistan is the rupee.

Brrunno [24]

Answer:

$15.35 trillion

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

11.80 + 1.25 + 3.10 + (1.35 - 2.15) = $15.35 trillion

7 0

3 years ago