Cost Benefit Analysis Format for Students

Prepared By: [YOUR NAME]
Organization: [YOUR COMPANY NAME]
Date: [DATE]

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I. EXECUTIVE SUMMARY

Provide a brief overview of the analysis, including the purpose and a summary of key findings.

• Objective: [STATE THE PRIMARY OBJECTIVE OF THE ANALYSIS]

• Key Benefits: [LIST THE MOST SIGNIFICANT BENEFITS IDENTIFIED]

• Key Costs: [LIST THE MOST SIGNIFICANT COSTS IDENTIFIED]

• Recommendation: [STATE WHETHER THE BENEFITS OUTWEIGH THE COSTS OR VICE VERSA]

II. BACKGROUND AND PURPOSE

Explain the context and reasons for conducting this cost-benefit analysis.

• Context: [DESCRIBE THE SITUATION OR NEED THAT PROMPTED THIS ANALYSIS]

• Purpose: [STATE THE GOAL THIS ANALYSIS AIMS TO ACHIEVE]

III. SCOPE OF THE ANALYSIS

Define the boundaries of the analysis, including the stakeholders involved and timeframes.

• Stakeholders: [LIST THE RELEVANT PARTIES IMPACTED BY THE DECISION]

• Timeframe: [SPECIFY THE TIME PERIOD UNDER REVIEW]

IV. IDENTIFICATION OF COSTS

List and describe all relevant costs associated with the project, program, or decision.

A. Direct Costs

• Description: [LIST COSTS DIRECTLY ATTRIBUTABLE TO THE PROJECT]

• Examples: [MATERIAL COSTS, EQUIPMENT PURCHASES, LABOR EXPENSES, ETC.]

B. Indirect Costs

• Description: [LIST SECONDARY COSTS INDIRECTLY RELATED TO THE PROJECT]

• Examples: [OVERHEAD COSTS, ADMINISTRATIVE EXPENSES, ETC.]

C. Opportunity Costs

• Description: [LIST POTENTIAL OPPORTUNITIES LOST BY PURSUING THIS OPTION]

• Examples: [DELAY IN OTHER PROJECTS, MISSED REVENUE STREAMS, ETC.]

V. IDENTIFICATION OF BENEFITS

List and describe all anticipated benefits, both tangible and intangible.

A. Tangible Benefits

• Description: [LIST MEASURABLE BENEFITS SUCH AS INCREASED REVENUE OR COST SAVINGS]

• Examples: [INCREASED PROFIT MARGINS, REDUCED MAINTENANCE COSTS, ETC.]

B. Intangible Benefits

• Description: [LIST NON-MEASURABLE BENEFITS SUCH AS IMPROVED CUSTOMER SATISFACTION]

• Examples: [ENHANCED BRAND REPUTATION, EMPLOYEE MORALE, ETC.]

VI. DATA COLLECTION AND ANALYSIS

Describe how data was gathered and analyzed to assess costs and benefits.

• Data Sources: [LIST DATA SOURCES USED FOR THE ANALYSIS]

• Methodology: [EXPLAIN THE METHODS USED TO CALCULATE COSTS AND BENEFITS]

VII. RESULTS AND FINDINGS

Present the key outcomes of the analysis.

• Total Costs: [SPECIFY THE TOTAL COST AMOUNT CALCULATED]

• Total Benefits: [SPECIFY THE TOTAL BENEFIT AMOUNT CALCULATED]

• Net Benefit (or Cost): [SPECIFY THE DIFFERENCE BETWEEN BENEFITS AND COSTS]

VIII. SENSITIVITY ANALYSIS

Assess the impact of changes in key variables on the overall findings.

• Variable Assessed: [LIST VARIABLES TESTED FOR SENSITIVITY]

• Impact Analysis: [DESCRIBE HOW CHANGES AFFECT THE RESULTS]

IX. CONCLUSIONS AND RECOMMENDATIONS

Summarize the findings and provide actionable recommendations.

• Summary of Findings: [RECAP THE MAIN RESULTS]

• Recommendation: [STATE THE RECOMMENDED COURSE OF ACTION]

• Rationale: [JUSTIFY THE RECOMMENDATION BASED ON THE ANALYSIS]

X. APPENDICES

Include any additional information, detailed calculations, or reference materials.

• Appendix A: [DETAILED COST CALCULATIONS]

• Appendix B: [DETAILED BENEFIT CALCULATIONS]

• Appendix C: [REFERENCES OR DATA SOURCES]

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