FREE online courses on Capital Budgeting Analysis - Additional Considerations in Capital Budgeting Analysis - Post Analysis

 

One of the most important steps in capital budgeting analysis is to follow-up and compare your estimates to actual results. This post analysis or review can help identify bias and errors within the overall process. A formal tracking system of capital projects also keeps everyone honest. For example, if you were to announce to everyone that actual results will be tracked during the life of the project, you may find that people who submit estimates will be more careful. The purpose of post analysis and tracking is to collect information that will lead to improvements within the capital budgeting process.