Cost approach method

Nini Johanna Vesga Group 212032_137 27/apr/2024

How can companies create value from their innovation?

Cost approach method

Companies can create value from innovation when the benefits of implementing it do not raise the final costs of the product and, on the contrary, obtain benefits both in terms of profitability and in terms of improved production costs and stakeholder satisfaction

Processes related and mathematical formulas to the calculation of the value of technology using the selected method

Selected topic definition

It corresponds to the reasonable estimate of the costs associated with the development, protection and commercialization of such technology. It is to perform the valuation of the technology on the basis of the cost used to create it. How much would you be willing to pay?

in the company has purchased the asset, the value corresponds to the price paid for it. If the compañy produced the asset, it is equal to the sum of the direct costs that the compañy paid to be able to produce it