Cost Benefit Analysis
A cost-benefit analysis is a systematic process that businesses use to analyze which decisions to make and which to forgo. The cost benefit analyst sums the potential rewards expected from a situation or action and then subtracts the total costs associated with taking that action. Some consultants or analysts also build models to assign a dollar value on intangible items, such as the benefits and costs associated with living in a certain town.
Before building a new plant or taking on a new project, prudent managers conduct a cost-benefit analysis to evaluate all the potential costs and revenues that a company might generate from the project. The outcome of the analysis will determine whether the project is financially feasible or if the company should pursue another project.
In many models, a cost-benefit analysis will also factor the opportunity cost into the decision-making process. Opportunity costs are alternative benefits that could have been realized when choosing one alternative over another. In other words, the opportunity cost is the forgone or missed opportunity as a result of a choice or decision. Factoring in opportunity costs allows project managers to weigh the benefits from alternative courses of action and not merely the current path or choice being considered in the cost-benefit analysis.
By considering all options and the potential missed opportunities, the cost-benefit analysis is more thorough and allows for better decision-making. A cost-benefit analysis should begin with compiling a comprehensive list of all the costs and benefits associated with the project or decision.
Achieve benefits while preserving cost. Cost-benefit analysis compares the strengths and weaknesses of alternatives and weighs the cost and benefits of a project or decisions in order to determine its feasibility.
The Cost-benefit PowerPoint Template helps you to weigh alternatives and determine the best in terms of benefit and return as illustrated with the weighing balance in the first slide. The dollar icon in the right weight pan and the pile of books in the left weight pan set the tone for benefit/value consideration. Value(benefits) and cost factor in when determining the feasibility of project. The hand icons set the tone for choice to be made between cost and benefits.
This template will be useful for financiers when preparing a company analysis. You can present the main business indicators of the company in different directions or groups of products. Also, this template can be used by investment companies when preparing an analysis of the activities of companies in which money can be invested.
Startup executives can use this template when preparing to meet with potential investors. University professors can use this template when preparing courses on financial analysis of a company or calculating the cost of production.
Cost of alternative plans and features are considered before a plan is chosen in the cost-benefit analysis. Commonly used in financial transactions, business or policy decisions and project investment to measure the value of a project. Ideal for strategic planners, financial planners, entrepreneurs, business owners, startup founders, project managers, business analysts, operation managers, etc.
The cost-benefit analysis template is 100% editable and customizable as per your requirements. You can modify the color, text, resize icons and shapes to suit your preference. The cost-benefit analysis template is visually attractive and engaging to keep your audience from beginning to end. This template contains all the tools you need to build a professional and modern presentation. The slides in this template will complement and update your old financial analysis presentations. The Cost Benefit Analysis Template will be a worthy addition to your collection of professional presentations.