Cost approach method

Adriana Lucia Torres Usme group number: 52 Date: 13/04/2024 Cost approach method

Cost approach method

The cost approach method is the valuation that is based on the economic principle to replace technological assets, referring to the cost of creating or acquiring a similar asset, with the cost approach it seeks to measure the value of the assets considering the different costs with which the technological substitution must be carried out and the costs are calculated to arrive at future profits.

* Costs of the material used in the development of the technology. * Labor costs: wages, taxes, workers' compensation, insurance, overtime and other fees. * Other prorated overhead costs * Costs of new improvements and redesigns.

Mathematical formula

cost of materials used + labor + additional costs generated

How can companies create value from their innovation?

The company can obtain innovations, but it must have positive perspectives in the services or products created, to achieve this objective it must be different to promote competitive advantages with markets and assets, where it shows clear evidence of operational efficiency resources, promoting the capacity and commitment to the processes

Bibliographic references World Intellectual Property Organization (WIPO) & International Trade Center (ITC), (2010). Exchanging Value – Negotiating Technology LicensesOpen this document with ReadSpeaker docReader, A Training Manual (pp 32-41). https://www.wipo.int/edocs/pubdocs/en/licensing/906/wipo_pub_906.pdf REILLY, R. F. (2015). Family Law Valuation of Technology Intangible Assets. American Journal of Family Law, 29(1), 16–26. https://bibliotecavirtual.unad.edu.co/login?url=https://search.ebscohost.com/login.aspx?direct=true&db=lgs&AN=101056263&lang=es&site=eds-live&scope=site

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