logging in or signing up Cost benefit analysis hippomatic Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 7177 Category: Entertainment License: All Rights Reserved Like it (3) Dislike it (0) Added: April 21, 2009 This Presentation is Public Favorites: 3 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Cost Benefit Analysis : Cost Benefit Analysis John Taylor Management : Management Governments and special interest groups have pointed out that cost relating to business are not reflected in corporate accounts . Corporate executives are looking for techniques that will account for impacts on the general public. Management : Management Managers were looking to accountants to develop the required cost benefit analyses to supplement usual rate of return projects. Cost Benefit Accounting Reason For Use : Reason For Use Reduce uncertainty in decision making. Could forestall unpleasant reaction by angry populace. Data can serve as a predictor of cash cost. Cost Benefit – Mandatory? : Cost Benefit – Mandatory? Government is about to require social costs and benefits before allowing new chemical plants. Public spirited investors are demanding disclosure of societal contributions. The government may have to justify new or further spending programs. Shortfalls of Traditional Accounting : Shortfalls of Traditional Accounting Focuses on past actions-sunk cost. Doesn’t account for external factors. Considers some resources to be free. Focus is almost always towards shareholders, not stakeholders. Shortfalls of Cost Benefits Accounting : Shortfalls of Cost Benefits Accounting Complex Cost and Benefits Analysis Cost too high for most industries Questionable value until improvements in: Standards & Comparisons Knowledge ability of readers Techniques of Cost Benefits Analysis : Techniques of Cost Benefits Analysis Terminology Benefits Cost Excess benefits over cost Projects should be undertaken if: Benefits exceed cost Benefits/cost ratio > 1 CBA Frame Work : CBA Frame Work The idea is to identify the discounted cash flow Present value of net cost or net benefits Constraints : Constraints Projects must be mutually exclusive CBA must include all aspects of the project – if there are several parts Use of appropriate discount rate CBA is Here to Stay : CBA is Here to Stay Organizations, private corporations and individuals are increasingly looking beyond traditional accounting for better impact measurements. You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Cost benefit analysis hippomatic Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 7177 Category: Entertainment License: All Rights Reserved Like it (3) Dislike it (0) Added: April 21, 2009 This Presentation is Public Favorites: 3 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Cost Benefit Analysis : Cost Benefit Analysis John Taylor Management : Management Governments and special interest groups have pointed out that cost relating to business are not reflected in corporate accounts . Corporate executives are looking for techniques that will account for impacts on the general public. Management : Management Managers were looking to accountants to develop the required cost benefit analyses to supplement usual rate of return projects. Cost Benefit Accounting Reason For Use : Reason For Use Reduce uncertainty in decision making. Could forestall unpleasant reaction by angry populace. Data can serve as a predictor of cash cost. Cost Benefit – Mandatory? : Cost Benefit – Mandatory? Government is about to require social costs and benefits before allowing new chemical plants. Public spirited investors are demanding disclosure of societal contributions. The government may have to justify new or further spending programs. Shortfalls of Traditional Accounting : Shortfalls of Traditional Accounting Focuses on past actions-sunk cost. Doesn’t account for external factors. Considers some resources to be free. Focus is almost always towards shareholders, not stakeholders. Shortfalls of Cost Benefits Accounting : Shortfalls of Cost Benefits Accounting Complex Cost and Benefits Analysis Cost too high for most industries Questionable value until improvements in: Standards & Comparisons Knowledge ability of readers Techniques of Cost Benefits Analysis : Techniques of Cost Benefits Analysis Terminology Benefits Cost Excess benefits over cost Projects should be undertaken if: Benefits exceed cost Benefits/cost ratio > 1 CBA Frame Work : CBA Frame Work The idea is to identify the discounted cash flow Present value of net cost or net benefits Constraints : Constraints Projects must be mutually exclusive CBA must include all aspects of the project – if there are several parts Use of appropriate discount rate CBA is Here to Stay : CBA is Here to Stay Organizations, private corporations and individuals are increasingly looking beyond traditional accounting for better impact measurements.