Machine-translated by Google. Questions are authored in English.
Top

Discussion

Double counting occurs in a benefit cost study when the same effect is counted

  • A.by two different agencies at the same time
  • B.in both the numerator and the denominator conventions
  • C.as a benefit and again as a cost saving
  • D.in two successive years of the project

Answer: C

Correct answer: as a benefit and again as a cost saving

The classic case is counting both the time road users save and the resulting rise in land values, when the second is largely the capitalisation of the first. Counting both inflates the numerator without any additional real effect, and it is one of the commonest ways an appraisal is made to pass.

No comment is present. Be the first to comment.
Loading…

Post your comment

Please log in or register to post a comment.