Open AccessReal Estate Financing Techniques Can Be Motivational Tools
Author(s) -
David West,
Timothy D. West
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v16i1.2030
Subject(s) - activity based costing , real estate , finance , process (computing) , business , capital (architecture) , economics , computer science , accounting , archaeology , history , operating system
Internal financing decisions regarding corporate real estate are not market determined. Managers calculate occupancy costs by utilizing capital allocations, financial charges, and IRRs. This process can be rather arbitrary. Although newer costing systems produce more accurate numbers, they may not create better working relations. This article demonstrates that desired organizational behavior in some instances may be motivated more effectively with three imprecise financial techniques than with truly accurate costing.