What key factors does a business need to consider when making an investment? Discuss why these factors are important, the impact of not taking them into account and actions a company can take to ensure their decision is a strong one.

Finance for Managers

1. You were asked to use examples to describe the advantages and disadvantages of costing techniques used during relevant costing decisions.  Make sure you meet the requirements of the question.
2.  Be careful that you don’t imply that relevant costing and CVP are the same thing. When we perform CVP analysis we do use relevant costing but they are two different concepts.
QUESTION
What key factors does a business need to consider when making an investment? Discuss why these factors are important, the impact of not taking them into account and actions a company can take to ensure their decision is a strong one.