Evaluation of the opportunity cost in Jam Petrochemical Company Projects

Subject Areas : Management Accounting

ابراهیم عباسی ¹ , عیسی رستگار ²

1 - مسئول مکاتبات
2 - ندارد

Received: 2011-05-21 Accepted : 2011-09-06 Published : 2011-09-23

Keywords: Opportunity Cost, budget deviation, Cost of Capital, Opportunity profit,

Abstract :

The purpose of this paper is evaluating of opportunity cost in jam petrochemicalprojects. The hypothesis of this research were investigated by using of Kolmogrov-Smirnov test ,Paired samples test and the Pierson correlation. The results due thestudy of 4 projects that were started and finished during 2002-2006years demonstratedthat the real cost of all projects are over than their budgets. Also the opportunity costaverage of the projects are over than used expenditures. So the results demonstratedthat there is significant correlation among budget deviation , depreciation expense ,capital cost and opportunity profit with the opportunity cost. With study has beenconducted in JAM petrochemical companies projects can accept which reasonincrease of project's cost and tardiness is inexperience of internal contractor andnon-performance correct and complete map of project management