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Benefit Cost Ratio (BCR) - This is the value obtained by dividing the benefit by the cost. The greater the value, the more attractive the project is. For example, if the projected cost of producing a product is Rs.10,000, and you expect to sell it for Rs.40,000, then the BCR is equal to Rs.40,000/Rs.10,000, which is equal to 4. For the benefit to exceed cost, the BCR must be greater than 1.
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What is the difference between expired cost and unexpired cost?
expired cost - benefit has been received unexpired cost- benefit may or may not be received
What is the different between expired cost and unexpired cost?
expired cost - benefit has been received unexpired cost- benefit may or may not be received
How do calculate break even point?
Break even point = Fixed cost / Contribution margin ratio Contribution margin ratio = (sales - variable cost ) / Sales
Consumers use cost-benefit analysis in order to maximize what?
Consumers use cost-benefit analysis in order to maximize utility.
How do you calculate the break even point for EBIT?
Breakeven point = Fixed cost / contribution margin ratio contribution margin ratio = sales - variable cost / sales.
Cost-benefit ratio in project?
cost benefit ratio is the ratio to be applied in finding of potentiality of project proposed to be implemented in terms of cost and the available materials ( eg.Land ) for th project which in turn equalizing the sources of capital applied and the resources or input achieved in terms of the ratio in the ascending equation:
How is a benefit/cost ratio computed?
Benefit Cost Ratio (BCR) - This is the value obtained by dividing the benefit by the cost. The greater the value, the more attractive the project is. For example, if the projected cost of producing a product is Rs.10,000, and you expect to sell it for Rs.40,000, then the BCR is equal to Rs.40,000/Rs.10,000, which is equal to 4. For the benefit to exceed cost, the BCR must be greater than 1.
How cost benefit ratio obtain?
Benefit Cost Ratio (BCR) - This is the value obtained by dividing the benefit by the cost. The greater the value, the more attractive the project is. For example, if the projected cost of producing a product is Rs.10,000, and you expect to sell it for Rs.40,000, then the BCR is equal to Rs.40,000/Rs.10,000, which is equal to 4. For the benefit to exceed cost, the BCR must be greater than 1.
How is a benefit cost ratio computed?
divide the benefit by amount spent to achieve it. Take an ad campaign, for example. The cost is what is spent on the advertising. The benefit is the increase in sales due to the advertising.
What is the advantage of benefit cost analysis?
Advantages and disadvantages of benefit cost ratio
In which circumstance would a benefitcost ratio lead people to decide that a project is not worth doing?
If the cost is more than the benefit.
If you have total cost and total benefit how do you get marginal cost and marginal benefit?
Marginal cost is total cost/quantity Marginal benefit is total benefit/quantity
What is cost ratio calculated by?
Cost Ratio = expenses/earnings
What is the formula for beverage cost ratio?
formula for beverage cost ratio
What is opportunity cost and opportunity benefit?
Opportunity cost is the cost that an opportunity presents. The opportunity benefit is the benefit of the opportunity that is being presented.
When will a cost benefit analysis be done?
when will a cost benefit analysis be done
What characterizes cost-benefit analysis?
Cost-benefit analysis is rational.
