How Do You Develop A Cost-Benefit Analysis?
Decide if a product or service your company receives or provides is worthwhile by conducting a cost-benefit analysis. Although it may sound complicated, a cost-benefit analysis is a fairly simple tool to use when making important business or personal financial decisions. Here are steps for doing a cost-benefit analysis. Determine and define your objectives. A cost-benefit analysis must include project objectives and background information so the reviewer can understand the information even if not intimately familiar with the industry. Document the product or service’s current process. All reviewers involved in the cost-benefit analysis need to understand the details of the current work processes so they can make the best decision regarding an alternative. Include information about customer service, current system capabilities and the makeup of the current system. Estimate future requirements and upgrades. Talk with those inside your company or professionals outside your company to find
