Cost analysis template can help companies and business to do a complete analysis of the cost and benefits for a business transaction, decision or project. Cost analysis template will help business owners, project managers and business analyst to have a consistent and uniform style and format in the course of analyzing projects etc.
Cost analysis Format
There are two key issues in the course of conducting cost benefit analysis: the first is to identify cost and second is to calculate the total benefits for the business including intangible benefits. When you have gathered all relevant information about cost and benefits, you may subtract all identified costs from the expected benefits to determine whether the positive benefits outweigh the negative costs.
When calculating the direct and indirect cost, these cost may include: development cost, operational cost, recurring and non-recurring cost etc. The benefits to business may include: direct profits from products and/or services, increased contributions from investors, decreased production costs due to improved and standardized processes, and increased production capabilities etc.
Cost Analysis Template
In the course of creating your own sample cost analysis, you need to consider the style, format and the key information in the template: general information, management decision, alternative decision.
The first part in cost analysis template example is background information. In the part, you need to give a background information, the information may include: the business scope, purpose, reference and overview.
The second part in sample cost analysis template is analysis and decision. In the section, you need to show your assumption, methodology, evaluation criteria and the business decision and recommendations.
The third part in cost analysis format is the alternative decision. You will make comparisons between the current decision with the proposed decision and show the rational for your choice.