成本预算英文版课件(PPT87页)
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▪ The amount of money committed to the acquisition of capital assets is usually quite large
▪ The long-term nature of capital assets creates technological risk
• Capital budgeting has three phases:
▪ Identifying potential investments, ▪ Choosing which investments to make, and ▪ Follow-up monitoring of the investments.
• Capital assets create these capacity-related costs
11-3
Need to Control Capital Assets
• Organizations have developed specific tools to control the acquisition and use of long-term assets because:
▪ Organizations are usually committed to long-term assets for an extended time, creating the potential for • Excess capacity that creates excess costs • Scarce capacity that creates lost opportunities
machinery • Where to locate manufacturing facility?
11-7
Investment and Return
• Investment and return form the foundation of capital budgeting analysis, which focuses on whether the expected increased cash flows (return) will justify the investment in the long-term asset
11-9
wenku.baidu.com
Time Value of Money
A dollar today is worth more than a dollar a year from now since a dollar
received today can be invested, yielding more than a dollar a year from
▪ Reduce an organization’s flexibility
11-4
Meaning of Capital Budgeting
• Capital budgeting can be defined as the process of analyzing, evaluating, and deciding whether resources should be allocated to a project or not.
• Two decisions
▪ Make or buy • Comparing _____ with ______ • Activity analysis • Use of facilities • Strategic issuses
▪ Joint product process further • Comparing sale value ____ and ____the process
• Investment is the monetary value of the assets the organization gives up to acquire a long-term asset which are often called capital outlays.
• Return is the increased future cash inflows attributable to the long-term asset
• Two costs
▪ Opportunity cost ▪ Sunk cost
11-1
Capital Budgeting
Chapter 11
Long-Term (Capital) Assets
• Capital assets are equipment or facilities that provide services to the organization for more than one fiscal period.
11-5
11-6
Types of Capital Budgeting Decisions
• Should we add a new product to our existing product line?
• Should we expand into a new market? • Should we replace our existing machinery? • Should we buy fully automatic or semiautomatic
11-8
The Time Value of Money
Which would you rather have -- $1,000 today or $1,000 in 5 years?
Obviously, $1,000 today. Money received sooner rather than later allows one to use the funds for investment or consumption purposes. This concept is referred to as the TIME VALUE OF MONEY!!
▪ The long-term nature of capital assets creates technological risk
• Capital budgeting has three phases:
▪ Identifying potential investments, ▪ Choosing which investments to make, and ▪ Follow-up monitoring of the investments.
• Capital assets create these capacity-related costs
11-3
Need to Control Capital Assets
• Organizations have developed specific tools to control the acquisition and use of long-term assets because:
▪ Organizations are usually committed to long-term assets for an extended time, creating the potential for • Excess capacity that creates excess costs • Scarce capacity that creates lost opportunities
machinery • Where to locate manufacturing facility?
11-7
Investment and Return
• Investment and return form the foundation of capital budgeting analysis, which focuses on whether the expected increased cash flows (return) will justify the investment in the long-term asset
11-9
wenku.baidu.com
Time Value of Money
A dollar today is worth more than a dollar a year from now since a dollar
received today can be invested, yielding more than a dollar a year from
▪ Reduce an organization’s flexibility
11-4
Meaning of Capital Budgeting
• Capital budgeting can be defined as the process of analyzing, evaluating, and deciding whether resources should be allocated to a project or not.
• Two decisions
▪ Make or buy • Comparing _____ with ______ • Activity analysis • Use of facilities • Strategic issuses
▪ Joint product process further • Comparing sale value ____ and ____the process
• Investment is the monetary value of the assets the organization gives up to acquire a long-term asset which are often called capital outlays.
• Return is the increased future cash inflows attributable to the long-term asset
• Two costs
▪ Opportunity cost ▪ Sunk cost
11-1
Capital Budgeting
Chapter 11
Long-Term (Capital) Assets
• Capital assets are equipment or facilities that provide services to the organization for more than one fiscal period.
11-5
11-6
Types of Capital Budgeting Decisions
• Should we add a new product to our existing product line?
• Should we expand into a new market? • Should we replace our existing machinery? • Should we buy fully automatic or semiautomatic
11-8
The Time Value of Money
Which would you rather have -- $1,000 today or $1,000 in 5 years?
Obviously, $1,000 today. Money received sooner rather than later allows one to use the funds for investment or consumption purposes. This concept is referred to as the TIME VALUE OF MONEY!!