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.
expired cost - benefit has been received unexpired cost- benefit may or may not be received
expired cost - benefit has been received unexpired cost- benefit may or may not be received
Break even point = Fixed cost / Contribution margin ratio Contribution margin ratio = (sales - variable cost ) / Sales
Consumers use cost-benefit analysis in order to maximize utility.
Breakeven point = Fixed cost / contribution margin ratio contribution margin ratio = sales - variable cost / sales.
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:
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.
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.
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.
Advantages and disadvantages of benefit cost ratio
If the cost is more than the benefit.
Marginal cost is total cost/quantity Marginal benefit is total benefit/quantity
Cost Ratio = expenses/earnings
formula for beverage cost ratio
Opportunity cost is the cost that an opportunity presents. The opportunity benefit is the benefit of the opportunity that is being presented.
Cost-benefit analysis is rational.
when will a cost benefit analysis be done