Cost Benefit Analysis Format for Students
Prepared By: [YOUR NAME]
Organization: [YOUR COMPANY NAME]
Date: [DATE]
I. EXECUTIVE SUMMARY
Provide a brief overview of the analysis, including the purpose and a summary of key findings.
Objective: [STATE THE PRIMARY OBJECTIVE OF THE ANALYSIS]
Key Benefits: [LIST THE MOST SIGNIFICANT BENEFITS IDENTIFIED]
Key Costs: [LIST THE MOST SIGNIFICANT COSTS IDENTIFIED]
Recommendation: [STATE WHETHER THE BENEFITS OUTWEIGH THE COSTS OR VICE VERSA]
II. BACKGROUND AND PURPOSE
Explain the context and reasons for conducting this cost-benefit analysis.
III. SCOPE OF THE ANALYSIS
Define the boundaries of the analysis, including the stakeholders involved and timeframes.
IV. IDENTIFICATION OF COSTS
List and describe all relevant costs associated with the project, program, or decision.
A. Direct Costs
Description: [LIST COSTS DIRECTLY ATTRIBUTABLE TO THE PROJECT]
Examples: [MATERIAL COSTS, EQUIPMENT PURCHASES, LABOR EXPENSES, ETC.]
B. Indirect Costs
Description: [LIST SECONDARY COSTS INDIRECTLY RELATED TO THE PROJECT]
Examples: [OVERHEAD COSTS, ADMINISTRATIVE EXPENSES, ETC.]
C. Opportunity Costs
Description: [LIST POTENTIAL OPPORTUNITIES LOST BY PURSUING THIS OPTION]
Examples: [DELAY IN OTHER PROJECTS, MISSED REVENUE STREAMS, ETC.]
V. IDENTIFICATION OF BENEFITS
List and describe all anticipated benefits, both tangible and intangible.
A. Tangible Benefits
Description: [LIST MEASURABLE BENEFITS SUCH AS INCREASED REVENUE OR COST SAVINGS]
Examples: [INCREASED PROFIT MARGINS, REDUCED MAINTENANCE COSTS, ETC.]
B. Intangible Benefits
Description: [LIST NON-MEASURABLE BENEFITS SUCH AS IMPROVED CUSTOMER SATISFACTION]
Examples: [ENHANCED BRAND REPUTATION, EMPLOYEE MORALE, ETC.]
VI. DATA COLLECTION AND ANALYSIS
Describe how data was gathered and analyzed to assess costs and benefits.
VII. RESULTS AND FINDINGS
Present the key outcomes of the analysis.
Total Costs: [SPECIFY THE TOTAL COST AMOUNT CALCULATED]
Total Benefits: [SPECIFY THE TOTAL BENEFIT AMOUNT CALCULATED]
Net Benefit (or Cost): [SPECIFY THE DIFFERENCE BETWEEN BENEFITS AND COSTS]
VIII. SENSITIVITY ANALYSIS
Assess the impact of changes in key variables on the overall findings.
IX. CONCLUSIONS AND RECOMMENDATIONS
Summarize the findings and provide actionable recommendations.
Summary of Findings: [RECAP THE MAIN RESULTS]
Recommendation: [STATE THE RECOMMENDED COURSE OF ACTION]
Rationale: [JUSTIFY THE RECOMMENDATION BASED ON THE ANALYSIS]
X. APPENDICES
Include any additional information, detailed calculations, or reference materials.
Appendix A: [DETAILED COST CALCULATIONS]
Appendix B: [DETAILED BENEFIT CALCULATIONS]
Appendix C: [REFERENCES OR DATA SOURCES]
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