Accountants can contribute to feasibility study analysis by evaluating cost savings and other benefits versus operating costs and other cash outflows.This is better known as
A) the "best guess" model of benefit analysis.
B) the "value added" benefit model.
C) the capital budgeting model.
D) the estimated benefits model.

Question

Quizplus · Accepted Answer

The described analysis is part of the capital budgeting process, which involves evaluating potential investments by comparing their expected cash inflows to their expected cash outflows. Accountants are well-equipped to contribute to this analysis by evaluating the costs and benefits of a proposed investment, including assessing potential cost savings, revenue increases, and other benefits. Additionally, accountants may also evaluate the risks associated with the proposed investment and incorporate this information into the decision-making process. This process is commonly used to evaluate new projects or expansion opportunities and is a critical step in the decision-making process for many organizations.

Accountants Can Contribute to Feasibility Study Analysis by Evaluating Cost