Every business requires financial system management to calculate a business or a project strengths and weakness to ensure to run the business for longer period. It also helps business to understand their product and run the business accordingly. There are several techniques available to find out the exact or estimated metric of any project or product but the most important of all is cost benefit analysis. It has considered to be the most effective way to find whether the business fruitful or not.
Starting a business often comes with a risk as there is huge investment is involved in any business. They are not sure that a particular business can crack it. Now they don’t have worry as the cost benefit analysis estimates the cost and benefits of a product or project. It also helps you to understand the business in-depth.
What is Cost Benefit Analysis?
Cost benefit analysis is a function used in business to determine what measures is to be taken to improve a business. Cost benefit analysis is a comparison technique, which can tell the expected cost and benefits from the project. This metric is used for to evaluating the monetary gains. This metric is to help business owners to come to a decision that project can meet their expectations. With the results gathered from cost benefit analysis the management can come to an decision to proceed with the project or to put a hold on to the team.
The results plays crucial role in this metric as it can tell the value of project in both monetary gains and it can assess the value.
Cost Benefit Analysis Definition:
Cost Benefit Analysis is commonly used by private business to estimate the product or project cost and benefits from a relevant duration. Cost Benefit Analysis is also used by government to determine the outcome of the project.
It helps the business owner to predict the cost and worth of the project.
List of Cost Benefit Analysis Templates:
This is the first Cost Benefit Analysis template, it has very good and simple structure to understand. This template is designed for 3 services.
- Proposed Product.
- Any Service.
There are several quantitative cost involved in it. you can check which quantitative you are include your project or product. remember all of the cost are non-recurring cost.
On the other hand, the second part of the Cost Benefit Analysis template is recurring cost. After math will be the cost and benefits you will be facing after years.
This is another form of cost benefit analysis template, it has very unique yet simple structure. Type your project name then type who has prepared it then add date.
Now you have describe the project. what is this project is about, how you are planning to execute it and what do you need to start the project.
Moving to second part of “List of alternatives”, where you have type in the cost and benefits in the second list to decide what is best for business.
Every nature of business and projects are different in all sectors. This another layout but it does the same task as Cost Benefit Analysis. This Cost Benefit Analysis template is unique and very easy to understand.
On the top, you can see that capital cost, years depreciated over and other set up cost then over all calculation.
Now the template is separated in to columns, First is ‘costs’ and other one is ‘benefits’, makes sense isn’t it?
Now that there are plenty of options you can choose from. Add all of them cost then calculate then in the second column add necessary information to get benefits
This is another Cost Benefit Analysis, which is quite unique in style and calculation is accurate. This template has four columns, which is good for presentation.
You have to type in the company name then who has conducting the Cost Benefit Analysis. Now add date of submission.
On the second column, type in any objectives, why you are analyzing the project. Make sure to give convincing purpose.
Moving to the third column, which is the most important part of the metric. You have to type 3 cost and 3 reasons for incurring.
In case if you have missed part, you can mention it typing it in “alternative options”. Now you can end it with your signature.
Living cost comparison sheet calculates living cost based on our daily life expenses of any individual. The template is quite simple, just fill in the blanks to get a accurate result.
It is clearly visible that it calculates all of the expenses we spend on our daily life and calculates our earnings, spendings, resources, investments & security and then it gives you a good idea how much is the cost and benefits.
This is the most used Cost Benefit Analysis to calculate accurate cost and benefits to keep control over expenses and improve it.
We have individual Cost Benefit Analysis metric, isn’t that this metric is also available for corporate companies who are aiming to run the project for longer period. This template come in handy, when calculating initial worth of a project after expected year.
Cost Benefit Analysis Example’S:
Here is the first example on the list on Cost Benefit Analysis, which is divided in to two columns.
First column is for cost of equipment, hardware, software,consulting, training, personal/operational activity.
Second column is for quantitative benefits such as improved business process, reduced number of errors and development time. Reduced maintenance and number of supporting staff.
Once you done filling all of the blanks, calculate the over all expenses iof all years then you can come down to one value that decides the project worth.
As you can see from above image, CBA statistics is for Cost Benefit Analysis. You can calculate up to five year of duration using above template.
Like every template, this template have divided in to two different columns cost and quantitative benefits.
For first column, type in Implementation and recurring amount and calculate the total.
For the second template, type in one-time cost and recurring amount then calculate to get the total.
Benefits and other quantifiable metric will help you understand the project better.
Cost Benefit Analysis Templates also applies to education management as well. Now that you have this amazing administrative education template you can fill it up accordingly to get cost and benefits.
If you wan to calculate resources hours and financial cost this sample template is worth creating for your project.
Since it has divided in to two column, It can calculate five years of costs and benefits. For business resources this template is crucial so that you can decide a better move.
Life cycle cost and benefits is another resourceful way to figure out the cost and benefit of a business, academy, management and staff.
It has very clean and simple template. Any one can design their own Life cycle Cost Benefit Analysis Template like the above sample template.
Fill in the template, you can see there are mentioned advantages and disadvantages, tangible benefits and intangible investments and ROI will decide how well this project do in next few years.
The above sample template is designed for construction phase to calculate the outcome of the cost and benefits for next five years. Everything depends on the assumptions of the business.
WHEN SHOULD YOU CHOOSE COST BENEFIT ANALYSIS?
The design of each template is unique to determine the cost benefit analysis of their project. We have already covered why cost benefit analysis is very important to any new business or project. We have seen in the templates that which particulars are need to be filled and why are they necessary.
A analyst take take and write down all of the fields to come to a decision how this specific business does in coming future. Cost benefit analysis is used by all business owners since it helps you understand how worthy it can be after years of dedication and efforts put on it.
Cost benefit analysis can be created for any structure of project or doesn’t matter which nature of business you want to run. You can create one and determine exact position and value of your project in coming years.
- Name of the organization.
- Write down the project name.
- Mention project ID number.
- Write brief about project
- Mention the status of operation , if you are in to software fields.
Here are the 8 best Cost Benefit Analysis Templates which can help you sort of the whether to decide if its best business or not. These 8 best templates are feasible for different category and nature of business, however, they do the same metric in the end.
Cost Benefit Analysis Templates are straight forward and very simple to use. Each Cost Benefit Analysis Templates has unique designs to calculate accurate cost and benefits, which suits your requirement or not.
Now with the help of this metric you can decide which part is the weakest and which is the strongest to approach. We are looking forward to hear from your and in advance your valuable feedback is appreciated.