AAhhh, Cost Benefit Analysis

Options
zoeflain
zoeflain Registered Posts: 9 New contributor 🐸
I am now completely lost - i have completely finished everything apart from my cost benefit analysis.

I have done the table, with the heading Intangible Cost, Intangible Benefit, Tangible Cost and Tangible Benefit. i have put in two recommendations from each section - and have filled out in words the intangible and tangible costs and benefits.

Assessor says i need to make them into actual costs.

All my recommendations are done on company time so it would be time wasted not money?

Such as:

Internal Training (Management Accountant training the Assistant Accountant)
as a tangible cost: i have put managers and employes time used
tangible benefit:employees work more efficiently, reduction in errors
Intangible cost: competancy and level of training is potentially counteractive
intangible benefit: knowledge sharing

Bearing in mind i have no idea how much employees and managers earn, how am i meant to even guess the cost of this? what time frame is it over, a week a month etc?

If anyone can help i would greatly appreciate it as i am now getting myself into a tizz!

Thanks,
Zoe

Comments

  • exam panic
    exam panic Registered Posts: 157 Dedicated contributor 🦉
    Options
    annoying unit 10 I got the same problem . Lucky that now all sort it
  • carlap
    carlap Registered Posts: 31 Regular contributor ⭐
    Options
    zoeflain wrote: »
    I am now completely lost - i have completely finished everything apart from my cost benefit analysis.

    I have done the table, with the heading Intangible Cost, Intangible Benefit, Tangible Cost and Tangible Benefit. i have put in two recommendations from each section - and have filled out in words the intangible and tangible costs and benefits.

    Assessor says i need to make them into actual costs.

    All my recommendations are done on company time so it would be time wasted not money?

    Such as:

    Internal Training (Management Accountant training the Assistant Accountant)
    as a tangible cost: i have put managers and employes time used
    tangible benefit:employees work more efficiently, reduction in errors
    Intangible cost: competancy and level of training is potentially counteractive
    intangible benefit: knowledge sharing

    Bearing in mind i have no idea how much employees and managers earn, how am i meant to even guess the cost of this? what time frame is it over, a week a month etc?

    If anyone can help i would greatly appreciate it as i am now getting myself into a tizz!

    Thanks,
    Zoe

    Hi

    Just put an approximate figure, no one else will know if it is an exact amount or not just you. Maybe look up a few salaries on the internet and work off them.

    Hope you get it finished
  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
    Options
    zoeflain wrote: »

    All my recommendations are done on company time so it would be time wasted not money?

    The cost benefit analysis can easily be covered by:

    1 describe the current practice in the accounting department. Cost that activity. In your case you have already worked out how much time is spent on that activity. cost that time spent. if necessary you can assume an hourly rate if you do not know the actual hourly rate used

    2 You will have made recommendations on how to save time by adopting a different method to carry out the same activity. Now again cost that activity by using the same hourly rate as in above or may be different hourly rate. (depending on your findings)

    3 your conclusion will be savings in time, speed and costs.

    You have already done 90% work on your cost benefit analysis. all you are now required to do is to convert that TIME VALUE into MONETORY VALUE.
  • zoeflain
    zoeflain Registered Posts: 9 New contributor 🐸
    Options
    Thanks for your help!! have now completed, yay!

    Zoe
Privacy Policy