BSBFIM601 Manage Finances: The National Capital Stock


Within the Foreword to the Public Spending Code, it asserts that “As we continue to expand the national capital stock, it is as important as ever to ensure  that investment decisions are underpinned by a clear policy rationale, that costs are well understood, that procurement, contracting and implementation are executed with professional rigour and that lessons learned from completed projects inform all future investment decisions”. 
There are several different ways of defining or categorising  costs including as direct, indirect, variable and fixed. These categories are used so that costs and cost behaviour can  be better understood, to better inform decision-making and to support the analysis and appraisal of projects and programmes. 
You are required to draft a report which: 
(1)  Explains,  using  illustrative  examples,  the  different  categories  of  cost  outlined  above and discusses how the understanding of cost behaviour helps the appraisal process .  
(2)  Discusses the challenges of using cost information to assist in the production of SMART indicators for either a health or education or large capital project.
Read less

Leave a Reply

Your email address will not be published. Required fields are marked *