Premises, recurring costs and recommendations

What this note covers

1. Define the premises decision
2. Put recurring costs on a common period
3. Separate fixed, variable and initial costs
4. Compare alternatives with total cost
5. Test sensitivity and cash timing
6. Write an evidence-based recommendation
7. Worked premises comparison: common time horizon and cost drivers
8. Worked recommendation: utilisation, revenue and sensitivity

8 sections · 10 key terms & formulas · 6 common mistakes