GAQM CITM-001 Exam - Topic 6 Question 26 Discussion

Tangible costs are those that can be easily quantified and measured, such as direct expenses or physical assets. However, in some cases, tangible costs savings can be difficult to estimate because they depend on various factors, such as the expected life cycle of the asset, the depreciation rate, the maintenance costs, the opportunity costs, and the market conditions. For example, if a company invests in a new production machine, the tangible cost savings would be the difference between the cost of the old machine and the cost of the new machine, plus the additional benefits of the new machine, such as higher output, lower energy consumption, and improved quality. However, these benefits may not be easy to measure or predict, especially in the long term. Therefore, tangible costs savings can be difficult to estimate in some cases.Reference:Tangible Cost: Meaning and Difference From Intangible Costs - Investopedia,What Are Tangible Costs? (Plus Why They Matter and Examples) | Indeed.com,Intangible Cost vs. Tangible Cost - What's the Difference? | This vs. That,Project tangible and intangible benefits - Twproject: project management software