In conducting a cost-benefit analysis, state any three cost items and any three intangible benefits you would Consider

CPA-Quantitative-Analysis-Section-4 BLOCK RELEASE

Cost-benefit analysis
This refers to a phase in the project selection process whereby the economic performance to a proposed system project is evaluated in terms of the probable costs and benefits.

Cost items considered during a cost-benefit analysis:

o Hardware costs.
o Telecommunication costs.
o Software costs.
o Service costs e.g. training of users, maintenance
o Personnel costs.

Intangible benefits
These are benefits that cannot be quantified. Intangible benefits that may be considered during const-benefit analysis:

i Improved asset utilization. ii Improved resource control.
iii Improved organizational planning. iv Increased organizational flexibility. v More timely information.
vi Increased organizational flexibility. vii More timely information.
viii Increased organizational learning. ix Legal requirements attained.
x Enhanced employee goodwill. xi Increased job satisfaction.
xii Improved decision-making. xiii Improved operation.
xiv High client satisfaction. xv Better corporate image.

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