Cost Benefit Efficiency

Ruddock1980
Ruddock1980 Registered Posts: 24 New contributor 🐸
in AAT Level 4 (Level 8 in Scotland)
Hi All

Wondered if anyone would help me, Im doing my Unit 10 Project on a stock system, however i work with the RAF so a Cost Benefit Analysis is out of the question as there is nil cost, my tutor has suggested doing a Cost Benefit Efficiency Analysis and wondered if anyone had any information that may help me in completing it?

Thanks in advance

Theresa

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  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
    Ruddock1980 wrote: »
    Hi All

    Wondered if anyone would help me, Im doing my Unit 10 Project on a stock system, however i work with the RAF so a Cost Benefit Analysis is out of the question as there is nil cost, my tutor has suggested doing a Cost Benefit Efficiency Analysis and wondered if anyone had any information that may help me in completing it?

    Theresa

    Unit 10 PC 10.2C - Cost Benefit Analysis

    "Review methods of operating regularly in respect of their cost-effectiveness, reliability and speed."

    Normally to meet this criteria you would look at a weakness and recommend a suggestion to improve on / eliminate that weakness. In so doing you would cost the recommendations and compare that with the existing practice. The difference would be the benefit to the company which you would normanlly show in monetary terms. - COST BENEFIT

    However to meet PC10.2C you can look at your recommendations to improve the accounting sytem weaknesses and compare in relation to reliability and speed, before your recommendations and after implementing your recommendations.

    for example

    Recommendation: the satellite office should scan the suppliers delivery notes and e-mail them the same day to the head office instead of posting them.

    Before recommendation:

    The delivery notes of 28th to 30th of the month were received after the month end date due to the postal delays. This resulted in inaccurate creditors figure because the invoices were not authorised to post on the accounting system without delivery notes.

    Since the implementaion of the above recommendation, the month end and year end creditors figures are more accurate and any discrepencies are sorted immediately.

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