The Use of Capital Budgeting Models in Utility Estimation Essay

The Use of Capital Budgeting Models in Utility Estimation - Essay Example Three key terms are incorporated into the preceding description of alternative choice problems: cost, revenue, and investment. If the applicability of Hunter et al.'s (1988) critique to capital budgeting models of utility is to be fully evaluated, the reader must understand how finance managers and accountants use these terms. Cost refers to the number of resources used for any purpose (Anthony & Reece, 1983). Costs incurred in an accounting period are either assets or expenses. An asset is defined as a cost that yields benefits to the organization beyond the current accounting period (usually 12 months). For example, a machine that is expected to have a useful life of 10 years is classified as an asset because it is expected to produce outputs (such as machined parts) that benefit the organization by bringing in revenue over a long period of time (in this case 10 years). An expense is defined as a cost that yields benefits to the organization only within the current accounting perio d. For example, the cost of electricity for the machine for one month is classified as an expense because the resulting benefits accrue only over the short term. Revenue refers to the inflow of funds that results from the sale of goods and services to the firm's customers. An investment is the acquisition of an asset resulting in a future stream of expected cash inflows (i.e., revenues). For the example of the machine purchase given earlier, parts produced with the machine would be sold to customers, and the resulting stream of revenues would be received over the 10-year life of the machine.

Mixing the Ideas of Marketing Strategies Essay Example | Topics and Well Written Essays - 500 words

Mixing the Ideas of Marketing Strategies - Essay Example She starts off with a very earthy and grassroots campaign, asking her friends and family what they think about the idea and gathering information. Jessica's strategy is somewhat unique, as it mixes the ideas of several of the main marketing strategies together. That being said, it includes almost no traits of market dominance, as she never mentions hoping to control the entire bridal registry market in its entirety. She never really compares herself to her competition, except that she thinks she can provide a better service than the service that is already available. In that tiny aspect, she could fit into the market challenger, as she is trying to challenge the norm for the market at the time, and providing what she feels is a new and necessary service. The market strategy that I think best fit's Jessica's model is the Innovation Strategy. This is one of the more complex strategies as it relies heavily on the creativity of the person partaking in it. She is trying to innovate the previous business model that was in place and is hoping to bring in revenue by doing so. I think she took a good first step in partaking in a successful innovation strategy, however, there are several things I would have her do differently along the way.