What is the ratio of the cost of dose?

, which is commonly examined as part of the cost and benefits analysis, the ratio of the cost of the benefits (BCR) The formula defined as the financial benefits of the project or the procedure divided by its cash costs, with all the benefits and costs expressed in current values. Analysts try to create adequate estimates of the costs and benefits by derived from market behavior or surveys. The higher the cost of the cost of the dose, the better the value of the project. The discount rate is usually based on the interest rate taken from the financial markets. This rate shall apply to all relevant future costs and benefits to detect current conditions.

The main insufficiency of BCR is that it ignores less tangible non -monetary impacts, such as penetration, loss of reputation or long -term strategic alignments. Another BCR problem involves clear defining and designated benefits and the cost of inclusion. They may vary depending on the financial organization or group of interest. Analysis using the ratio of the NáklaThe benefits are not common in large organizations, as their projects often include intangible factors that are not easy to quantify monetary monetary. For example, when analyzing the value of the railing installation on a treacherous road, the company must assign the value of the dollar by injuries and deaths that can be prevented and considered against the actual cost of railings.

Analysis based on the cost of the advantage should be considered caution, as they can be very wrong. The undervaluation of costs is common due to their great dependence on data from similar projects in the past. Project participants do not have to remember exactly the key costs of the project. The current project does not have to be directly comparable to the old project, differing in terms of size, function or levels of members. In addition, there may be formulas with which analysts assign values ​​of money to intangible factors, any and subject to bias.

ratioThe benefits of the benefit may also be wrong if analysts overvalid benefits. For example, if the company launches a new product and the expected sales are $ 60 million in the US (USD) annually, the actual annual sales of $ 30 million (USD) represent an advantage of 50 percent. The general tendency for people to be too optimistic results to overcome the likelihood of positive events and underestimating the probability of adverse events. When there is no shortcomings of benefits at the same time as cost exceeding, the BCR fails.