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People also ask
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What are some of the challenges in implementing a cost-benefit analysis?
One of the main challenges of CBA is assigning monetary values to costs and benefits. It can be hard to place a value on non-market goods or services that don't have a clear market price. This can introduce bias into the analysis, which can be problematic.
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Which of the following is a disadvantage of cost-benefit analysis?
Which of the following is a disadvantage of cost-benefit analysis: It does not consider the time value of money. It is too complex to implement. Different projects cannot be easily compared.
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What are the challenges of a computerized accounting system?
Read this article to learn about the ten security problems in computerized accounting. Theft of Computer Time: ... Manipulation of Programs: ... Theft of Data: ... Stealing Software: ... Controlling Access: ... Passwords: ... Backup Copies: ... Security for Backup:
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What are the limitations of cost profit analysis?
Limitations of cost-volume profit analysis All other variables, apart from volume, remain constant – ie volume is the only factor that causes revenues and costs to change. In reality, this assumption may not hold true as, for example, economies of scale may be achieved as volumes increase.
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What are some problems with benefit-cost analysis?
However, for large projects with a long-term time horizon, a cost-benefit analysis might overlook critical factors, such as inflation, interest rates, varying cash flows, and the present value of money. If these factors are either over- or underestimated, the entire cost-benefit analysis becomes unreliable.
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What are the limitations of a cost-benefit analysis?
Limitations of Cost-Benefit Analysis For smaller decisions, this may be more expensive than is worthwhile for the project. A cost-benefit analysis relies heavily on estimates and forecasts. It may be possible to make accurate forecasts for mid-level capital expenditures over short or intermediate periods of time.
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What are the challenges facing cost accounting systems?
Some of the challenges of cost accounting systems are: 1. They can be complex and costly to design, implement, and maintain, especially for large, diversified, or dynamic businesses that have multiple cost objects, cost drivers, cost pools, and cost allocation methods. 2.
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What are the limitations of cost-effective analysis?
Cost-effectiveness analysis will almost always include a series of assumptions, as it is generally not possible to measure everything necessary for a comprehensive analysis. In addition, even when measurements are available, they may not adequately represent values appropriate for the analysis at hand.
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