Cost Benefits Analysis Example - Free Download | Page 2
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M M U
C o s t B e n e f i t A n a l y s i s t o o l k i t ( v 2 )
Page
2
Item
1
Net expenditure
(£)
Gross
expenditure
2
(£)
Net staff costs (£)
Gross staff costs
(£)
Item 1 purchase
10,000.00
12,000
.00
Item 1 annual
maintenance
3
1,250.00
1,500
.00
External
consultant
12,500.00
15,000.00
New staff
requirement
4
35,000.00
42,000
.00
Training
1,750.00
2,100
.00
Instal
lation
900.00
1080
.00
Totals
13,900
.00
16,680
.00
47,500
.00
57,000
.00
Grand total
73,680
.00
(gross)
2. A more comprehensive approach
2.1 Types of cost:
For Medium and Major Projects, there should be a greater amount of detail on costs and financial
analysis. The table below illustrates the main headings under which costs should be presented.
These are examples – it’s not an exhaustive list!
Financials
Consist of:
Options:
Income
Number of Admissions,
Research Grants
•
Sell higher priced items (overseas students)
• Increase convenience
• Improve service experience
• Improve quality/appeal
• Increase capacity
• Increase awareness
• Improve accommodation
• Do more courses
Produc
tion Cost
Courses,
Consumable facilities,
Media
•
Sell more lower-cost courses
• Increase course numbers
• Reduce course development costs
• Reduce course life costs
• Increase cross utilisation of resources
• Reduce waste
Labour Cost
(could split into
academic / non-
Wages,
Hours,
Output
•
Improve scheduling based on demand
• Improve training outcomes
• Foster teamwork
1
Line item – in enough detail that GL code can be assigned
2
Always state rate at which VAT is calculated – in this example it’s 20%
3
Always include recurring cost items and make it clear what the recurring cycle is, e.g. monthly, annually.
4
Always state staff overheads – in this example it’s 20%
