Project - Cost Benefit Analysis

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:26AM in AAT student discussion
Hi Everyone,

Hope everything went well in the exams for everyone. I came out feeling rather pleased. I only sat DFS this time and thought there were no horrible surprises in there :)

I am now finalising my Project and I have been told that i need to do a Cost Benefit Analysis.. I dont know where to begin! In my project I impletemented a credit control system for the company that I work for.

If anyone can give me some idea as to what a Cost Benfit Analysis looks like or should contain I would be most gratefull.

Just need someone to point me in the right direction..

Thanks
Andy

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Project - Cost Benefit Analysis

    Hi Andy

    This is the last thing I also have to do for my project and I really didn't have a clue so I had a look in the accounting dictionary for some help.

    It says "a technique used in capital budgeting that takes into account the estimated costs to be incurred by a proposed investment and the estimated benefits likely to arise from it. In a financial appraisal the benefits may arise from an increase in the revenue from a product or service, from saved costs, or from other cash inflows, but in an economic appraisal the economic benefits such as the value of time saved or of fewer accidents resulting from a road improvement, often require to be valued"

    If your project is based around the credit control function then I would think you would have to explain the financial benefits ,ie cash inflows, of implementing the new procedures.

    Hope this makes sense! :roll:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Project - Cost Benefit Analysis

    A cost benefit analysis basically shows the financial benefits to come, less the costs of implementing the changes that you're recommending.

    In other words, the savings anticipated from the changes, less your implementation expenses, should give you a net benefit figure, to show that the changes are financially viable.

    Hope that helps!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Project - Cost Benefit Analysis

    Thanks

    Wow, who would have thought Marvin the Martion and Elmer Fudd could be so helpful.

    Will make a start. Once it done its done and i can relax.

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