Cost-benefit analysis is a process used to measure the benefits of a decision or action minus the costs associated with taking that action.
Cost-benefit analysis includes measurable financial metrics such as revenue generated or cost saved as a result of the decision to proceed with the project.
Cost-benefit analysis may also include intangible benefits and costs or effects of a decision such as employee morale and customer satisfaction.
More sophisticated cost-benefit analysis may include sensitivity analysis, cash flow discounting, and multi-option what-if scenario analysis.
Ceteris paribus, an analysis that produces more benefits than costs will generally be a favorable project for the company.
Evaluation costs are the fees a company pays for discovering defects in its products before they are delivered to customers; they are a form of quality control.
The articles of association can be seen as a user manual for the company, defining its purpose and outlining the methodology for carrying out the necessary day-to-day tasks.
When a company or government agency buys or leases existing manufacturing facilities to launch new manufacturing activities, this is called an investment in existing facilities.
The Code of Ethics sets out the ethical principles of the organization and the best practices to be followed with respect to honesty, integrity and professionalism.