Basic Techniques For Analyzing And Presentation Of Cost Risk Analysis
- Topics:
- Modeling
- Tags:
- Balance Sheets,
- Risk Analysis,
- Productivity,
- Financial Statements,
- Financial Accounting,
- Finance,
- Decision,
- Crystal Ball,
- Capital Cost,
- Technique
- Source:
- Crystal Ball
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Overview: Capital costs are quantified (estimated), analyzed and presented as part of the strategic decision making process in today's business environment. Strategic decisions are usually centered on new product introductions, increased capacity for existing products, vertical business integration, or other decisions that generally affect the balance sheet of a corporation. Strategic decisions generally have multiple objectives and alternatives, long term impacts, multiple constituencies within the company, involve multiple disciplines and multiple decision makers, and always involve various degrees of risk and uncertainty. A capital estimate is a quantification and presentation of the monetary resources (investment costs or dollars) required to achieve a business objective. This paper discusses techniques for analyzing and presenting a more complete picture of all the possible resource requirements outcomes using the widely accepted quantitative process known as simulation with Monte Carlo analysis.
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Format: HTML | Date: Jan 2003 | Pages: 1
