TAILIEUCHUNG - Lecture Cost management: Measuring, monitoring, and motivating performance (3rd edition) – Chapter 13

Chapter 13 - Strategic investment decisions. In this chapter students will be able to: Apply alternative methods in analyzing strategic investment decisions, identify additional issues to be considered for strategic investment decisions, explain how income taxes affect strategic investment decision cash flows,. | LO1 Explain how strategic investment decisions are made LO2 Identify relevant cash flows and perform net present value (NPV) analysis for capital investment decisions LO3 Identify the uncertainties of NVP analysis LO4 Apply alternative methods in analyzing strategic investment decisions LO5 Identify additional issues to be considered for strategic investment decisions LO6 Explain how income taxes affect strategic investment decision cash flows LO7 Explain how real and nominal methods are used to address inflation in an NPV analysis Chapter 13: Strategic Investment Decisions LO1 Explain how strategic investment decisions are made Capital Budgeting Strategic investment decisions have long-term effects. Capital budgeting is a process that managers use when they choose among strategic investment opportunities. Capital budgeting decisions affect cash flows in future years which introduces an important concept, the time value of money, which refers to the idea that a dollar received today is worth more than a dollar received in the future. The first bullet is automated. One click is required for each remaining bullet and sub-bullet. Identifying and Prioritizing Investment Opportunities Relevant Cash Flows Relevant cash flows must arise in the future and differ among decision alternatives (possible courses of action) At the beginning of the project, at time 0, the company faces initial cash outflows During years 1 through n, the life of the project, there are annual, incremental operating cash flows for the project Any terminal cash flows appear at the end of the project’s life (time n) Relevant Cash Flows Examples of relevant cash outflows include: Initial investment outlay Future operating costs Project closing and cleanup costs Examples of relevant cash inflows include: Future revenues Decreased operating costs Salvage value of assets at project’s end This slide is entirely automated. No clicks are required. Quantitative Analysis Techniques Methods that consider the

• Quản trị kinh doanh
• Cost management
• Quản lý chi phí
• Lecture Cost management
• Strategic management
• Decision making
• Strategic investment decisions
• Management control systems
• Cost accounting
• Fundamentals of cost accounting
• Cost analysis
• Cost management systems
• Cost systems
• Strategic performance measurement
• Cost management information
• Financial reporting
• Operational performance measurement
• Resource capacity management
• Indirect cost variances
• Cost allocation
• Cost allocation bases
• Cost estimation
• Cost estimation methods
• Ebook Management and cost accounting
• Management and cost accounting
• Management accounting
• Cost assignment
• Process costing
• Cost volume profit analysis
• Project management
• Lecture Project management in practice
• Project cost management
• Project perspective
• Cost management plan
• Cost versus expenses
• Cost volume profit
• Short term profit planning
• Cost planning
• Product life cycle
• Direct cost variances
• Nonfinancial performance measures
• Cost centers
• Profit centers