Breakdown approach helps managers select projects.
In an era of increased financial strain, effective capital budgeting is critical to a hospital's continued viability. Without accurate estimates of a project's costs and benefits, however, even the most sophisticated selection method is subject to a capital manager's prediction errors. Rather than use typical performance reports to evaluate particular projects or the managers proposing them, administrators should scrutinize the assumptions behind managers' predictions. A decomposition or divide-and-conquer approach can assist in this analysis.
Cappettini
R
R
School of Accountancy, San Diego State University, CA.
Chow
C
C
Williamson
J
J
D002017:Budgets; D003657:Decision Making; D005240:Feasibility Studies; D005377:Financial Management, Hospital / Q000379:methods*; D007182:Income / Q000706:statistics & numerical data; D015233:Models, Statistical; D010934:Planning Techniques; D011357:Product Line Management / Q000379:methods*; D014481:United States