March 2011
Intermediate to advanced
256 pages
5h 50m
English
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Appendix AHOW CUSTOMER MANAGERSBUDGET CAPITAL EXPENDITURES
When a capital expenditure is proposed, the project must be evaluated and the economic consequences of the commitment of funds determined before it is referred to a budget committee for review or to management for approval. How are the economic consequences described best? This is done in two steps:
First, set up the project in a standard economic model that can be used for all projects, no matter how dissimilar to one another they may be.
Benefits – Costs = Cash Flow
To describe the formula in accounting terminology:
Thus, if the model were stated in a conventional accounting form, it ...
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I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.