Run cost-benefit analyses the right way — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
You know about the importance of cost-benefit analyses, but the key is understanding how to weigh a decision based on the right framework. Before you start identifying costs and benefits in a haphazard way, confirm with your boss the formula you’ll apply. If you’re assessing a financial project, for instance, choose an accounting rule that your bosses will accept. That can range from return on capital employed (ROCE) to payback periods to discounted cash flows (DCFs). Don’t assume you know what’s best. Talk it out first.
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