Tuesday, September 21, 2010

Blog 3.3-Cost Benefit Analysis


In a Cost Benefit Analysis,  there are various components, each of which denoting key pieces of data in relation to cost of starting a business and its returns from the first year and from several years. 

The first year you have non-recurring expenses, such as start-up supplies. The first year also is the time when a negative profit is recorded, since generally the cost of starting a business far out weighs the initial returns.

The table also shows monetary values for such expenses as maintaining the company and paying its employees. 

While the lower portion denotes the amounts gained, attributed to the profits and the error reduction based on each successive years' outcomes.

The total denotes the amount spent minus the amount gained.
Proxy Data is a valuable tool for indicating trends, it is non-profit based quantitative data that is helpful for determining trends.

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