Answer:
A cost-benefit analysis is a systematic process that businesses use to analyze which decisions to make and which to forgo. The cost-benefit analyst sums the potential rewards expected from a situation or action and then subtracts the total costs associated with taking that action. Some consultants or analysts also build models to assign a dollar value on intangible items, such as the benefits and costs associated with living in a certain town.
KEY TAKEAWAYS
A cost-benefit analysis (CBA) is the process used to measure the benefits of a decision or taking action minus the costs associated with taking that action.
A CBA involves measurable financial metrics such as revenue earned or costs saved as a result of the decision to pursue a project.
A CBA can also include intangible benefits and costs or effects from a decision such as employees morale and customer satisfaction.
Cost-Benefit Analysis (CBA)
Understanding Cost-Benefit Analysis (CBA)
Before building a new plant or taking on a new project, prudent managers conduct a cost-benefit analysis to evaluate all the potential costs and revenues that a company might generate from the project. The outcome of the analysis will determine whether the project is financially feasible or if the company should pursue another project.
In many models, a cost-benefit analysis will also factor the opportunity cost into the decision-making process. Opportunity costs are alternative benefits that could have been realized when choosing one alternative over another. In other words, the opportunity cost is the forgone or missed opportunity as a result of a choice or decision. Factoring in opportunity costs allows project managers to weigh the benefits from alternative courses of action and not merely the current path or choice being considered in the cost-benefit analysis.
By considering all options and the potential missed opportunities, the cost-benefit analysis is more thorough and allows for better decision-making.
The Cost-Benefit Analysis Process
A cost-benefit analysis should begin with compiling a comprehensive list of all the costs and benefits associated with the project or decision.
The costs involved in a CBA might include the following:
Direct costs would be direct labor involved in manufacturing, inventory, raw materials, manufacturing expenses.
Indirect costs might include electricity, overhead costs from management, rent, utilities.
Intangible costs of a decision, such as the impact on customers, employees, or delivery times.
Opportunity costs such as alternative investments, or buying a plant versus building one.
Cost of potential risks such as regulatory risks, competition, and environmental impacts.
Benefits might include the following:
Higher revenue and sales from increased production or new product.
Intangible benefits, such as improved employee safety and morale, as well as customer satisfaction due to enhanced product offerings or faster delivery.
Competitive advantage or market share gained as a result of the decision.
An analyst or project manager should apply a monetary measurement to all of the items on the cost-benefit list, taking special care not to underestimate costs or overestimate benefits. A conservative approach with a conscious effort to avoid any subjective tendencies when calculating estimates is best suited when assigning a value to both costs and benefits for a cost-benefit analysis.
Finally, the results of the aggregate costs and benefits should be compared quantitatively to determine if the benefits outweigh the costs. If so, then the rational decision is to go forward with the project. If not, the business should review the project to see if it can make adjustments to either increase benefits or decrease costs to make the project viable. Otherwise, the company should likely avoid the project.
With cost-benefit analysis, there are a number of forecasts built into the process, and if any of the forecasts are inaccurate, the results may be called into question.
Limitations of the Cost-Benefit Analysis
For projects that involve small- to mid-level capital expenditures and are short to intermediate in terms of time to completion, an in-depth cost-benefit analysis may be sufficient enough to make a well-informed, rational decision. For very large projects with a long-term time horizon, a cost-benefit analysis might fail to account for important financial concerns such as inflation, interest rates, varying cash flows, and the present value of money.
Mr. Spacek runs a stationery supply business from Ohio. He exports stationery to countries in Latin America. Changes in oil prices have a direct impact on his business costs. Why do you think changes in oil prices affect Mr. Spacek’s business?
A.
the transaction costs may decrease
B.
the transportations costs may increase
C.
the time lag and its related costs may widen
D.
the acceptable tariffs and quotas may be affected
Changes in oil prices affect Mr. Spacek’s business through acceptable tariffs and quotas may be affected.
What is tarrif?A tariff is the amount of money paid on goods by an importer.
The amount determined by the government of the country and the money is paid into the government purse.
The change in oil price can increase the tarrif thereby increasing the overall cost of production of the business.
Therefore, Changes in oil prices affect Mr. Spacek’s business through acceptable tariffs and quotas may be affected.
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fast pls!!! Shepard University is launching new services to attract more students. They offer bachelor's
degrees in 25 majors, boast a brand new fitness center, Wi-Fi in residence halls, and 24-hour
dining options. Which of these is an example of a core service offered by Shepard University?
O bachelor's degrees
fitness center
O Wi-Fi in residence halls
O 24-hour dining options
Answer:
Bachelor's degree
Explanation:
You go to a college for a degree, so that is the main and thus "core" focus. Anything else is extra, so the degree itself is the main service. Therefore, it's the core.
Eugene is an expert in genealogy. he runs an online business where he teaches people how to trace their family history through videoconferencing and workshops and provides digital tools for doing so. what must he do first to make sure this business will succeed?
Eugene should convince the people of the community about the popularity of genealogy if he wants to make his/her business successful.
What is Genealogy?Genealogy is the practice followed in the US country to find out about the history of the families and their ancestors in ancient times.
Genealogy gains much popularity in the country of the US over the period of time. In the provided case, if Eugene is able to convince the people about the practice of genealogy, then it helps in flourishing his business to a greater extent.
Therefore, the task of convincing people about genealogy by Eugene help him in expanding his business.
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“Equivalent income in the city you are moving to” and the “percentage decrease you can take in your salary to still maintain your standard of living”. What do these two sentences mean?
Answer:
The two sentences mean that the "Equivalent income" is the income you can receive in the new city. The "percentage decrease" in salary to maintain your current living standard is the rate of decrease in salary.
Explanation:
For example, if your equivalent income in the new city is $45,000 and your current income is $50,000, and the percentage decrease in salary is 40%, it implies that your living standard may be below $45,000.
Thus, at a salary of $45,000, you can still maintain your living standard with a salary of $30,000 ($50,000 x (1 - 0.4).
How do consumers influence the decisions of producers?
By setting prices for goods and services
Through following procedures set by the government
By working to produce goods and services
Through the purchasing decisions they make
Answer:
Through the purchasing decisions they make
Explanation:
An example might be that a producer would stop producing an item if very few consumers buy it.
This type of investment typically has a greater long-term-rate of return than a
savings account.
Credit Union
Credit Card
Stock
Checking Account
A Stock investment typically has a greater long-term rate of return than a savings account.
What is a Stock?A stock is basically a financial investment that represents fractional ownership of a company or business. In other words, holding a company stock implies you own a percentage share of the business's potential success.
Hence, since there are many guiding factors that could make a once small company into a big company in the future, such as experiencing increased investor interests, etc, it thus makes a stock investment have a greater long-term rate of return than a savings account.
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Researchers at the Oregon Pharmaceutical Company are conducting a study entitled, Ways to Market New Products to Millennials. This research study is an example of _______.
"Researchers at the Oregon Pharmaceutical Company are conducting a study entitled, Ways to Market New Products to Millennials." Applied research is in play here. This is further explained below.
What is Applied research?Generally, Applied research is simply defined as research focused on looking for solutions to real-world issues, you're doing "applied" research.
In conclusion, "Ways to Market New Products to Millennials" is the title of a study being conducted by Oregon Pharmaceutical Company researchers. In this case, we're dealing with the results of actual study.
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Question 1 (1 point)
Which of these is not expected when international trade occurs?
Answer:
This is incomplete, I need the options to be able to answer this question
Kari is on a trip to italy. she has made a list of cities she would like to tour while she is there, as well as how much she expects it will cost her (between transportation, admission, souvenirs, and so on) to see each one. the prices are listed in either us dollars ($) or euros (€). kari has a budget of $585 set aside for sightseeing. item cost currency tour of the vatican 68.77 € tour of rome 95.41 € tour of naples 71.06 $ tour of venice 113.38 $ tour of milan 49.69 € she would also like to tour genoa as well, which would cost her €60.85. if the conversion rate of us dollars to euros at the time of kari’s visit is 1:0.6859, how will this affect her budget? round all dollar values to the nearest cent. a. kari can see genoa and have $60.33 left in her budget. b. kari can see genoa and have $41.38 left in her budget. c. kari has almost exactly enough left in her budget to see genoa. d. kari cannot afford to see genoa, because it would put her $84.48 over budget.
Based on the amount budgeted and the cost of sight seeing, kari has almost exactly enough left in her budget to see genoa.
Which city should Kari see?Exchange rate is the rate at which one currency is exchanged for another currency. In ths question, 1 dollar is exchange for 0.6859 euros.
The first step is to convert the amount budgeted to Euros: 585 x 0.6859 = 401.25 Cost in Euro of seeing Naples : 0.6859 x 71.06 = £48.74Cost in Euro of seeing Venice : 0.6859 x 113.38 = £77.77Total cost of the sightseeing = £48.74 + £77.77 + £68.77+ £95.41 + £49.69 + £60.85 = £401.25To learn more about exchange rate, please check: https://brainly.com/question/13717814
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Answer:
c.
Kari has almost exactly enough left in her budget to see Genoa.
Explanation:
i just took the test
A buyer paid $800,000 for an investment property. the total annual income is $75,000; loss due to bad debt and vacancy is $5,000 a year; and expenses are $1,200 per month in addition to debt service of $2,700 per month. what is the capitalization rate for the property
Answer: Real estate appraisals are used by sellers, buyers, and their lenders. Sellers want to ensure that their sale price is not less than the property's worth.
Explanation:
Globalization has affected developed countries by encouraging new products. providing a solid consumer base. turning their focus to providing services. increasing employment for unskilled workers.
Answer:
C
Explanation:
Edge 2022
Globalization has affected developed countries by turning their focus to providing services. Thus, the third option is correct.
What is globalization?Globalization is a phrase used to describe how trade and technology have connected and interdependent the world. Globalization encompasses the economic and societal developments that have resulted as well.
More jobs in nations where jobs are required are a byproduct of globalization, which can benefit the national economy and result in a greater standard of life. As the standard of living rose, more poor children quit employment and went to school.
Therefore, the primary focus of globalization is to provide services.
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Country a has a gdp of $60,000,000, and country b has a per capita gdp of $2,000. if the populations of countries a and b are 40,000 and 20,000, respectively, which country is most developed based on per capita gdp, and why
With respect to the GDP per capita, country B is a more developed economy with a per capita GDP of $2,000.
What is GDP per capita?
The total GDP of a nation divided by its total population is regarded as its GDP per capita. In the given case, the GDP per capita of country A will be computed as $1500, and that of country B is given as $2000.
Hence, country B is more developed with a GDP per capita of $2,000.
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Use what you have learned about secured and unsecured loans to complete these sentences. a loan that is associated with a valuable asset that can be taken by the lender is . ray needs to get a new set of tires for her car, so she uses her credit card. if she does not pay her bills, there is no asset that can be seized. this means her loan is . jack agrees to take out a mortgage. if he fails to make his payments, the bank may repossess his house, so his loan is .
A loan that is associated with a valuable asset that can be taken by the lender is a secured loan.
Ray's loan is unsecured.
Jack's mortgage is a secured loan.
What are secured and unsecured loans?A secured loan is a loan that is backed up by an asset. If the borrower defaults on the loan,the lenfer can take possesion of the asset. An unsecured loan is a loan that is not backed up by any asset.
An unsecured loan is more risky than a secured loan. Thus, unsecured loans have a higher rate of interest.
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Answer: Secured, Unsecured, Secured
Explanation:
edge 2022
A wider variety of goods available at cheaper prices may be a result of.
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Economies of scope occur when producing a wider variety of goods or services in tandem is more cost effective for a firm than producing less of a variety, or producing each good independently.Poppy's Gumball Co. is planning to invest in a new marketing campaign that would require an initial investment of $85,000. The project is expected to provide incremental annual income of $27,200. The simple rate of return on the project is
The simple rate of return on the project is 32% if the cost investment is $85,000 and the annual income earned on it is $27,200.
What is annual income?Annual income is the amount of gain earned by a company from the investment made in a long-term project. It can be determined from the income statement of a company.
Given values:
Annual income : $27,200
Initial investment : $85,000
Computation of simple rate of return on investment:
[tex]\rm\ Simple \rm\ rate \rm\ of \rm\ return =\frac{\rm\ Annual \rm\ incremental \rm\ income}{\rm\ Initial \rm\ Investment} \\\rm\ Simple \rm\ rate \rm\ of \rm\ return=\frac{\$27,200}{\$85,000} \\\rm\ Simple \rm\ rate \rm\ of \rm\ return=32\%[/tex]
Therefore, after making an initial investment of $85,000 into the project with an annual income of $27,200, the rate of return is earned at 32%.
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Which career is likely to earn the highest salary?
a) Hairdresser
b)Dentist
c)News Anchor
d)Flight attendant
Answer:
b.) Dentist
Explanation:
Hope it helps!
Burger Buddies restaurant chain is attempting to bring back their fried fish sandwich. It is an
old favorite, but in recent times has lost its popularity with customers. The burger chain has
hired a marketing firm to find new customers for the fried fish sandwich. What does the
marketing firm need to focus their efforts on?
® consumer modification
market modification
product modification
1 marketing mix modification
The marketing firm need to focus their efforts on
product modification.
What is product modificationProduct Modification includes changes that are done on an existing product to make it more acceptable.
This could include branding, changing the quantity and colour to help increase the demand.
Therefore, The marketing firm need to focus their efforts on product modification.
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Answer:
product modification
Explanation:
have a great summer you guys, i wish you all the best <3
Sales taxes collected by a retailer are recorded by.
Answer:
There recorded by sales
Explanation:
Sales taxes collected by a retailer are recorded as credit to sales taxes payable under the current liabilities section on the balance sheet.
Sales taxes collected by a retailer are typically recorded by the retailer themselves for accounting and reporting purposes.
How is the sales tax collectedThis is done to ensure compliance with tax regulations and to accurately track the amount of sales tax owed to the appropriate tax authority.
Retailers usually use point-of-sale (POS) systems or specialized accounting software to record sales transactions and calculate the sales tax amount. These systems are programmed to apply the appropriate tax rate based on the location of the sale and the type of product or service being sold.
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A company purchased land, a building, and equipment for one price of $1,800,000. The estimated fair values of the land, building, and equipment are $225,000, $1,575,000, and $450,000, respectively. At what amount would the company record the land
The company has purchased land, building and equipment for the one price and that price will be recorded in the company's record.
What is the historical cost concept?An Historical cost is a degree of cost utilized in accounting wherein the cost of an asset on the stability sheet is recorded at its unique fee whilst received via the employer.
The Historical cost technique is used for constant property within the United States under normally regularly occurring accounting principles. The ancient fee precept is a simple accounting precept beneath U.S. GAAP.
Under the Historical cost precept, maximum properties are to be recorded on the stability sheet at their historical fee, even though they have drastically expanded in cost over time.
Not all property is held at an ancient fee. For example, marketable securities are recorded at their honest marketplace cost on the stability sheet, and impaired intangible property is written down from the ancient fee to their honest marketplace cost.
Valuing property at an ancient fee prevents overstating an asset's cost, whilst asset appreciation can be the end result of unstable marketplace conditions.
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Which of the following is TRUE, based on the historic returns of the S&P 500? O The stock market fluctuates in the short term and is difficult to predict. It has average annual return of 6-7%, adjusted for inflation. O Stock prices rise consistently in the short term and only decrease during rece The stock market has an average annual return of 15%, adjusted for inflation. The stock market fluctuates in the short term and the majority of investors ca predict the direction of the market. The stock market has an average annual that is negative, adjusted for inflation. On average, the growth of the stock market matches the rate of inflation. It h average annual return of 2-3%, adjusted for inflation..
The stock market fluctuates in the short term and the majority of investors can predict the direction of the market.
What is S&P 500?The S&P 500 is an index that is used to measure the performance of stock market.
It is used in U.S. stock market to measure companies performance.
Therefore, The stock market fluctuates in the short term and the majority of investors can predict the direction of the market.
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Suppose that income tax revenues are maximized at an average (income) tax rate of 45 percent. If the Laffer curve is a correct diagrammatic representation of the relationship between tax rates and tax revenue, it follows that a tax rate of
Answer:
-35 percent will reduce tax revenues.
-48 percent will reduce tax revenues.
In what decade was the first price scanner installed?.
Answer:
On 26 June 1974, the first installation of supermarket scanners entered service in a Marsh supermarket in Troy, Ohio. This Spectra Physics model A price scanner, is one of those first ten scanners.
A person works as a cashier in a major supermarket. She sells vegetables to
customers, including local restaurants that use these ingredients to make
meals for their customers. The supermarket pays the cashier wages for her
work, which she uses to buy her own groceries and pay bills.
When the supermarket in the passage sells vegetables to restaurants, it takes
on which role in the circular flow of goods?
O A. Business market
O B. Resource market
O c. Product market
O D. Household market
Answer: IT B B
Explanation:
Trust the process
When the supermarket in the passage sells vegetables to restaurants, it takes a resource market role in the circular flow of goods. The correct option is b.
What is a resource market?Resource market definition formally refers to a market that furnishes companies, firms, and organizations with the factors of production in exchange for monetary benefits. Resource markets are those which provide businesses with the resources they need to provide the goods or services they offer. In this sense, these markets are more business-to-business than business-to-consumer.
A resource market may also be referred to as a factor market, which economists use to separately refer to all the resources that businesses employ to legally acquire what they need to undertake in the production of goods and services. It can also be termed the input market. Factors of production acquired in the concept or resource/factor markets include labor, capital, and land.
A simplistic definition is that a resource market is a market that provides businesses with the resources they need to produce goods and services.
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Select all that apply.
Select the items that describe a free market economy.
efficient market system
distribution of goods through price
competition among businesses
small selection of goods and services
little freedom for producers
Explanation:
Free market system is efficient and had wide array of sphere. In a free market system goods are distributed through price . As it include both consumers and producers which only deals on price.As in free market system there is no role of government, so there is a competition between businesses and business man to achieve greatest profit .What are the four general categories of quality costs?.
The four general categories of quality costs are internal failure, external failure, prevention, and appraisal.
What is the quality cost?Quality cost is a methodology that allows an organization to identify how much of its resources are spent on activities that prevent poor quality.
It assesses the quality of the firm's products or services, and result from internal and external failures.
Thus, the four general categories of quality costs are internal failure, external failure, prevention, and appraisal.
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if you purchase your health insurance plan through the federal marketplace, what is the website you go to?
Answer: HealthCare.gov
Explanation:
When considering the presentation of a retail store, which elements largely contribute to the visual experience for a consumer?.
When considering the presentation of a retail store, The elements that largely contribute to the visual experience for a consumer are the store layout and atmosphere. This is further explained below.
What is a retail store?Generally, a retail store is simply defined as a store that is normally owned and operated by a retailer but can also be owned and operated by someone whos not a retailer and sells items primarily to end-users.
In conclusion, The retail store aims to look good as it is the last link to the consumer.
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Tomato sauce and spaghetti noodles are complementary goods. a decrease in the price of tomatoes will
Answer:
low country development and low social amenitues
A country with a high dependency ratio probably has.
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A high BR, low gender inequality, and a low standard of livingWhat website would be the best to use to find the best steakhouse near your home?.
Answer:
the best one is yelp
Explanation:
your current location include Yelp.