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III. Module 2000 Explanation and Examples ka

Explanation and Examples

Always keep in mind that when you need to make any type of decision costs and benefits must be considered. Tangible costs and benefits are simple to evaluate. Intangible costs and benefits can often time be hard and occasionally not possible to fix with a dollar value. For example things time, lost opportunities should contain a cost just like improved morale, more information and customer goodwill have benefits, but it is difficult to assign a dollar value.

Tangible costs are frequently connected with an item which also has associated intangible costs. An intangible cost comprises of a subjective value placed on a condition or occurrence in an effort to measure its impact. Using an example- Costs that is associated with a client who received a defective good; usually the business organization usually will give the money back for the value of the good to the client, disbursing a tangible cost. However, if the client is still upset over the incidence, they have the choice of complaining regarding the service that didn’t meet expectation to associates and acquaintances. The probable loss of sales, which resulted from the associates and a acquaintances being informed of the complaints, comprises of an intangible cost relating to the defective good.