There is no accepted standard for appraising the worth of nonphysical assets like brands, human capital, and managerial expertise. Yet these are the essence of 21st-century business.
Content: Article | Author: Denise Caruso | Source: strategy+business | Subjects: Accounting, Finance, Management
Cost-benefit analysis can be an effective tool to analyze simple, one-dimensional problems, such as whether to install dividers on dangerous stretches of highway, where relatively unambiguous data is in abundant supply and there is little controversy. It also is a good way to elucidate the trade-offs for a given policy or regulation, or to produce a summary statistic about its economic efficiency.
But the cost-benefit method … [ Read more ]
Content: Quotation | Author: Denise Caruso | Source: strategy+business | Subjects: Analysis, Decision Making, Risk Management