FINANCIAL ANALYSIS

Variance and Cost-Benefit Analysis of Hybrid Automobiles: Tesla vs. BMW

Variance and Cost-Benefit Analysis of Hybrid Automobiles: Tesla vs. BMW

Cost Benefit Analysis

There are many reasons that one should carry out a cost benefit analysis, If one has to speak technically, it can be said that the advantages and the benefits that are associated with it are primary in nature. Some of the basics of the cost-benefit analysis are needed to be looked at to make sure one has a better perspective of what is needed to be done. As far as the applications of the cost-benefit analysis are concerned, it can be seen that they give management an idea about what is needed to be done and to see whether the project must be carried out or not (Demirdöven & Deutch, 2004, p.976). Another thing that is needed to be done and cost benefit analysis is carried out for that purpose is to make sure that the project is viable or not. And as we know that businesses are constrained with their budgets and they have to make sure that whether they project can be carried out in a limited budget.

Hybrid Vehicles

There are lots of things that separate a conventional hybrid vehicle from some of the other conventional automobiles (Urry, 2004, p.25). There are dashboard and some gauges that can give one an alert about what is the timing of the battery and the charging that is needed as far as assisting the engine is concerned. To make it simple, these are the cars that run on electricity and the gas at the same time. They are one of the more contemporary cars that are operating at the moment and thus they have fast caught the imagination of the customers. Resources Needed

There are many resources that one need to look when carrying out a cost benefits analysis, some of the resources that were employed and used are:

The general price level of fuel specially Gas.

Price Indexes

Important events such as: Hurricane Katrina, 9/11 Attacks and War on terror.

The number of vehicles on the road and personal income are some of the other variables that are needed to be looked at when carrying out this cost benefit analysis.

Performance of BMW

It can be seen that BMW has been performing rather well as far as its financial results are concerned and this gives them a edge as far as it close competitor Tesla is concerned. Their results of the third quarter were one of the better results that were observed in the history and thus they have done rather well in sustaining their financial position. They have been doing well rather well if one looks at some of their major markets and this is the biggest major of their success (Demirdöven & Deutch, 2004, p.976). When one looks at the industry trend, both of these firms are really close to each other as far as the productivity is concerned. Another thing that they have been able to do successfully is to make ...