Explains, using illustrative examples, the different categories of cost outlined above and discusses how the understanding of cost behavior helps the appraisal process: Finance Report, NCI, Ireland
| University | National College of Ireland (NCI) |
| Subject | Finance |
As we continue to expand the national capital stock, it is as important as ever to ensure that investment decisions are underpinned by a clear policy rationale, that costs are well understood, that procurement, contracting, and implementation are executed with professional rigor, and that lessons learned from completed projects inform all future investment decisions”.
There are several different ways of defining or categorizing costs including direct, indirect, variable, and fixed. These categories are used so that costs and cost behavior can be better understood, to better inform decision-making, and to support the analysis and appraisal of projects and programs.
REQUIREMENT
You are required to draft a report which:
(1) Explains, using illustrative examples, the different categories of cost outlined above and discusses how the understanding of cost behavior helps the appraisal process
(2) Discusses the challenges of using cost information to assist in the production of SMART indicators for either health or education or large capital project
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