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3 years ago

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

Business

1 answer:

ExtremeBDS [4]3 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) : =

Total Benefit in Net present value

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.

You might be interested in

Which of the following charts would be best to draw out the movement of people or material?

masya89 [10]

Answer:

c) Flow diagram.

Explanation:

Flow diagram also known as a flowchart can be defined as a visual representation or an activity diagram which is typically used to illustrate or demonstrate the simple sequence of actions or movements within a complex process and workflow. A Flow diagram would be best to draw out the movement of people or material.

Generally, a flowchart or flow diagram makes use of symbols such as rectangle, oval, diamond, arrow to represent the steps, flow or sequence of a complex system.

3 0

4 years ago

The assessment ratio isa) The ratio of assessed value to market valueb) The ratio of assessed value to the average value for pro

Ivan

Answer:

The correct answer is option A.

Explanation:

The assessment value can be found by calculating the ratio of assessed value of a property to its market value.

Market value is the rate at which the property can be sold in the open market.

The assessed value is the value given to the property by the assessor's office in order to estimate property taxes.

7 0

3 years ago

You are analyzing two companies that manufacture electronic toys – Like Games Inc. and Our Play Inc. Like Games was launched eig

frosja888 [35]

Answer:

A LOW days of sales outstanding represents an efficient credit and collection policy. Between the two companies, Like Games is collecting cash from its customers faster than Our Play, but both companies are collecting their receivables less quickly that the industry average. (5.51 days)

Our Play’s fixed assets turnover ratio is lower than that of Like Games. This could be because Our Play is a relatively new company, so the acquisition cost of its fixed assets is higher than the recorded cost of Like Games’s net fixed assets.

Like Games’s total assets turnover ratio is 1.05x, which is lower than the industry’s average total assets turnover ratio. In general, a higher total assets turnover ratio indicates greater efficiency.

Explanation:

DSO

Like Game 365 / (100,000 / 2,700) = 9.855

Our Play 365 / (100,000 / 3,900) = 14.235

Average 365 / (255,000/3,850) = 5.510

Fixed assets turnover:

LG 100,000 /55,000 = 1.82

100,000 / 95,000 ) = 1.052

average 255,000 / 234,600 = 1.087

OP 80,000 /55,000 = 1.45

Avg 255,000 / 216,750 = 1.18

4 0

3 years ago

Randy is a waiter at the silver spoon restaurant. his w-2 box 1 wages are $16,400, box 7 (social security tips) is $500, box 8 (

olga_2 [115]

Answer:

a)$16,894

Explanation:

The computation of his income is shown below:

= Wages + allocated tips for box 7 + tips that do not reported

= $16,400 + $350 + $144

= $16,894

We simply added the Wages, allocated tips for box 7, and tips that do not reported so that the exact value could come

All other information which is given is not relevant. Hence, ignored it

8 0

4 years ago

Read 2 more answers

A merchant purchased a jacket for $60 and then determined a selling price that equaled the purchase price of the jacket plus a m

JulsSmile [24]

Answer:

Gross profit will be $4

Explanation:

We have given that merchant purchased a jacket for $60

So purchased price = $60

Let the markup price is x

Now according to question selling price = x+60

Now it is given that marked up price is 25 % of the selling price

So $x=(x+60)\times \frac{25}{100}$

X = 20

So selling price = 60+20 =80

Now there is discount of 20%

So price after discount = $80-\frac{80\times 20}{100}=$64$

So gross profit = $64 -$60 = 4

7 0

4 years ago