Cost Benefit Analysis

Webby

Hi Everyone,

I'm completely stuck on how to fill in a cost benefit analysis for my Unit 10 project, can anyone help.

How far ahead should you look for the benefits, for example I'm trying to suggest a new software for the company so do you calculate how much you would benefit from the new software during it's entiry lifetime or do you just give a year as a example and how do you show this calculation.

Any feedback would be appreciated.

Webby

tomburns1987

Hi,

I did my unit 10 on Improving a Bank reconcilliation process so not sure this will be much help....
I looked at 5/6 different areas that I could change in order to improve the system and worked out savings based on how things where improved e.g Changing the day that the bank rec was run in the week allowed me to be able to complete 2 days earlier in the week which saved 2 days of work. I then calculated 2 days pay every week to give an annual saving in £££.
I also made a suggestion to employ a part time auditor to check one aspect of the bank rec which is normally subcontracted at a high cost - worked out an estimated saving between the subcontracted annual cost and the annual cost of a part time employee and used this figure in the cost / benefit analysis.

I think you can pretty much get away with anything as long as you write down some figures that sort of make sense and a breif explanation of how it will save money / time ect.

As for your timespan issue, i'd put things as annual costs / savings.

Hope that helps.

Tom