Curiosities of decision making – Life Cycle Costing

Hinkley Point. Always interesting to see decisions made that ignore basic management accounting principles. 

Here the Conservatives have committed us to paying over the odds for electricity for 35 years and of course, we will end up also paying for the decommissioning costs at the end of the plants short life. The problem will go on a very long time after it ceases to make electricity.

Further evidence, if we needed it that politicians do not make decisions like management accountants!

http://www.independent.co.uk/news/uk/politics/hinkley-point-nuclear-power-national-audit-office-slams-government-high-cost-risky-deal-a7803446.html

About Jonathan Rooks

Jonathan is an accountant who specialises in Mangement Accounting, the running of a business. He works with and entrepreneurs to help them increase income and reduce costs.
This entry was posted in Investment Appraisal, Life Cycle Costing. Bookmark the permalink.