Cost benefit analysis is a valuable tool

Assignment Help Business Management
Reference no: EM131293923

All of us have performed a simple cost benefit analysis (CBA). We just might not have realized it! Every time we "shop around" or comparison shop, we are performing a simple cost benefit analysis.

Preparing a CBA or Cost Benefit Analysis is a valuable tool to use not only in your professional career but also in your personal life as well. CBA's help us make decisions to determine which path to take. CBA's can be very simple (deciding which piece of equipment or software to purchase) or very complex (deciding whether or not to open a branch in another country.)

CBA's allow us to compare the benefits or advantages of two or more items or scenarios or to analyze the benefits and advantages of "decision A versus decision B." A CBA usually centers on costs. Consider what this item or project is going to cost you and consider how you might benefit financially in the long run.

When considering benefits or assets, we need to look at both tangible and intangible benefits. Tangible benefits are those that you can see and count; we can measure tangible benefits. We also look at what we call intangible benefits or benefits that are hard to measure or count. For example: You can put a price tag on a new car, but pride of ownership or that "happy" feeling you might get when driving a particular car is intangible and is hard to price.

For this case study assignment, prepare a simple CBA, just to get some experience and to somewhat know what people mean when they talk about CBA's. Select an item that is relevant to you! For example, you might be in the market for a new car, a new high definition television, or a new laptop computer. Perhaps you need to move to a different apartment, or perhaps you want to determine whether to move to Atlanta, GA, or to Charlotte, NC. You should prepare a CBA to help you make these types of decisions.

You have a choice in the way you format your cost benefit analysis. You may either create a PowerPoint presentation or prepare a report using Microsoft Word.

Complete the following steps:

  1. Document the goal you want to achieve. What sort of decision do you need to make? What is your purpose? (Every purchase or decision has a goal attached to it.)
  2. Select two similar items of different make and manufacturer or select two different paths that you might take.
  3. Conduct your research.
  4. Make sure you cover all your bases. Consider every little detail. Thorough research ensures a sound decision. For example, if you are purchasing a car, consider resale value, depreciation rates, insurance costs, and costs for oil changes and maintenance.
  5. Arrange your data in a chart or table that shows and compares all of the costs of the two items for one year out. Charts and tables are useful for comparing data side by side. For example, compare the gas mileage of both that Toyota and Chevy side by side so you can see the differences clearly. On the job, you'll have to go much further than one year out, but we'll keep it simple here.) These costs will include the original purchase price, any monthly service fee, the time involved to set up the equipment (In the business world, time is money.) and any start up costs. For example, if you buy a car, you must include the cost of a tank of gas and the cost of tax, title and tag.
  6. Include any intangible benefits for the items.
  7. Analyze the costs and benefits.
  8. Make your decision based on your cost benefit analysis.
  9. Cite any sources you use for information at the end of your file. Use APA format.
  10. Name your file U4_Case_(Your last name) and submit for grading.

Reference no: EM131293923

Questions Cloud

What is the largest operating liability : What is the percent of Operating Liabilities v Non-Operating Liabilities? What is the largest Operating Liability?
Determine heat transfer rate and entropy production rate : Determine the heat transfer rate and the entropy production rate of this system if its boundary temperature is maintained constant at 40.0°C.
Describe the dividend rate that tfc is paying : From the scenario, examine the dividend rate that TFC is paying in order to determine if the company should receive a rate adjustment.
Identify different methods of theft : Research Medical identity theft. Identify different methods of theft. Identify different preventative means.
Cost benefit analysis is a valuable tool : Preparing a CBA or Cost Benefit Analysis is a valuable tool to use not only in your professional career but also in your personal life as well. CBA's help us make decisions to determine which path to take.
Determine the amount of entropy produced : Assuming the tank is initially evacuated and that the helium behaves as an ideal gas with constant specific heats, determine the amount of entropy produced when the tank is filled (a) adiabatically and (b) isothermally at 70.0°F.
Describe the concept-importance of the project managemet : describe the concept and importance of the project management method.Identify the primary reasons for the PMO adopting a project management methodology.
What types of digital innovation do you think ford has : What types of digital innovation do you think Ford has used to develop an autonomous car. Reviewing Dealing with Darwin what types of corporate innovation do you think Ford used to develop the autonomous car.
Determine the entropy produced if the cylinder is filled : Determine the entropy produced if the cylinder is filled isothermally at 20.0°C and The final temperature and the entropy produced if the cylinder is filled adiabatically.

Reviews

Write a Review

 

Business Management Questions & Answers

  What are the policies towards piracy in this foreign country

How will you take into account the policies towards piracy in this foreign country when you take action to protect your intellectual property

  Development and change of culture

Expalin what historical events have had a dramatic impact on the development of your culture and have cultural traditions and behaviors changed as a result of significant historical events

  Describe the primary functions of management

Describe the primary functions of management (planning, organizing, leading, controlling) and the associated skills, tools, and theoretical approaches that can be used to accomplish these functions.

  Global business management corruption and tradecorruption

global business management corruption and tradecorruption index the corruption perceptions index cpi is a comparative

  When i think of leadership i envision someone with high

when i think of leadership i envision someone with high energy self-confidence and integrity. high energy is required

  Demand curve for corn

Suppose that the demand curve for corn is downward sloping but that the supply curve is perfectly price inelastic at a quantity of Q* once the corn is harvested. Futhermore, assume that the equilibrium price is $5 per bushel.

  Setting up a hypothesis test

Take a position on this statement: In setting up a hypothesis test, the claim should always be written in the alternative hypothesis. Provide one (1) example to support your position.

  Explain why bogdans should consider moving into ecommerce

What are the factors entrepreneurs should consider when determining the proper price to charge for a product - Explain why the Bogdans should consider moving into ecommerce.

  Calculate the gross proceeds needed from an ipo

Calculate the gross proceeds needed from an IPO

  Team development stages

Imagine that you are manager of a team that collaborates on several projects. These assignment requires to be addressed by the entire group to provide resolutions that are in the firm's best interest since it will affect all parties and sections.

  Tips for trainersconduct a search of the internet to

tips for trainersconduct a search of the internet to identify tips for trainers in dealing with difficult trainees.

  Key abilities and qualities to effectively reach objective

For a company to create a culture of sustainability, leaders must possess key abilities and qualities to effectively reach this objective.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd