x G What are some e × Q Chapter 12 ACCT ×A Solved: Internal F × Secure https://e
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x G What are some e × Q Chapter 12 ACCT ×A Solved: Internal F × Secure https://edugen wileyplus.com/edugen/lti/main.uni Return to Blackboard Kimmel, Survey of Accounting, le with Job Order Costing Helo I S en Assignment PRINTER VERSION BACK SOURCES Question 8 (Essay) What are some examples of potential intangible benefits of investment proposals? Why do these intangible benefits complicate the capital budgeting evaluation process? What might happen if intangible benefits are ignored in a capital budgeting decision? 16-8 16-3 ssay) 15-4 Question Attempts: 0 of 5 used SAVE FOR LATER SUBMIT IT ANSWIE s by Study Version 4.2
Explanation / Answer
There can be various intangible benefits of an Investment proposal. Some of them are:
Increased customer loyalty: A project can very well be in a direction of increasing customer loyalty like doing activities like CSR.
Increased employee motivation: An Invested can be proposed to increase the employee motivation.
Increased quality: An investment proposal can be made to enhance the quality.
These intangible benefits complicate the capital budgeting decisions because they are intangible in nature and hence very difficult to be quantified, so including them in the financial benefits analysis of an investment becomes complex and very difficult and hence they are preferred to be avoided.
It might happen that company may reject a valuable project, if it doesn't consider intangible benefits because a project that doesn't have high intangible benefits to support its acceptance may very well have very high intangible benefits to support the organisation goals and benefit it.
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