Challenges of Cost Benefit Analysis in a Computerised Accounting System Form
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People also ask
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Why can it be difficult to develop an accurate cost-benefit analysis?
Because it demands precisely estimating and evaluating the costs and benefits of a certain system or project, developing an accurate cost-benefit analysis may be challenging. -
Is cost-benefit analysis hard?
Because they are difficult to calculate, cost/benefit analyses are often inaccurate. Many high-profile projects have ended up costing double, triple, or quadruple the amount used in the cost/benefit calculation. The best way to compensate for this potential for error is to increase the cost side of the equation. -
What are the difficulties of cost-benefit analysis?
For very large projects with a long-term time horizon, a cost-benefit analysis might fail to account for important financial concerns such as inflation, interest rates, varying cash flows, and the present value of money. -
What makes the cost-benefit analysis more difficult for information systems?
Since the benefits of information systems are frequently intangible, such as decision-making abilities, their cost-benefit analysis is usually much more challenging and difficult to assess than most other investments. Moreover, it could be difficult to estimate maintenance costs from information systems. -
What are the challenges of computerized accounting system?
Top 10 Problems in Computerized Accounting System Theft of Computer Time: ... Manipulation of Programs: ... Theft of Data: ... Stealing Software: ... Controlling Access: ... Passwords: ... Backup Copies: ... Security for Backup: -
What are some of the challenges in implementing a cost-benefit analysis?
Limitations of the Cost-Benefit Analysis For very large projects with a long-term time horizon, a cost-benefit analysis might fail to account for important financial concerns such as inflation, interest rates, varying cash flows, and the present value of money. -
What is the difficulty in cost-benefit analysis?
The difficulty that is faced in cost-benefit analysis is that the costs are evident and easily measurable, while the benefits are not always evident or measurable. This is because the costs of the man, machine, and material are evident and measurable. -
What factors may be difficult to quantify in cost-benefit analysis?
Pollution. Pollution is an externality that economists have difficulty quantifying for a cost-benefit analysis.
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