What is meant by cost analysis?

Answer 1

A cost analysis will measure the efficiency or desirability of an endeavor in comparison to another endeavor. The analysis almost always quantifies things in terms of monetary cost; however, it could also be quantified in logistical ability or time.

Answer 2

It is an analysis of the company costs compared to the value they provide. If, for example, you have a supplier providing a widget a cost analysis may show that you pay for more features than customers want and going to another supplier that offers a widget with less features for cheaper (that you could sell for a higher margin) would be more profitable. Or simply it could find additional suppliers that offer the same widget at a lower cost or find new technologies to produce a product cheaper.

Answer 3

Cost analysis is refered to Cost analysis (also called economic evaluation, cost allocation, efficiency assessment, cost-benefit analysis, or cost-effectiveness analysis by different authors) is currently a somewhat controversial set of methods in program evaluation. One reason for the controversy is that these terms cover a wide range of methods, but are often used interchangeably.

At the most basic level, cost allocation is simply part of good program budgeting and accounting practices, which allow managers to determine the true cost of providing a given unit of service (Kettner, Moroney, & Martin, 1990). At the most ambitious level, well-publicized cost-benefit studies of early intervention programs have claimed to show substantial long-term social gains for participants and cost savings for the public (Berreuta-Clement, Schweinhart, Barnett, et al., 1984). Because these studies have been widely cited and credited with convincing legislators to increase their support for early childhood programs, some practitioners advocate making more use of cost-benefit analysis in evaluating social programs (Barnett, 1988, 1993). Others have cautioned that good cost-benefit or cost-effectiveness studies are complex, require very sophisticated technical skills and training in methodology and in principles of economics, and should not be undertaken lightly (White, 1988). Whatever position you take in this controversy, it is a good idea for program evaluators to have some understanding of the concepts involved, because the cost and effort involved in producing change is a concern in most impact evaluations (Rossi & Freeman, 1993).

Answer 4

Hi there,

Cost-benefit analysis is a term that refers both to:
a formal discipline used to help appraise, or assess, the case for a project or proposal, which itself is a process known as project appraisal; and
an informal approach to making decisions of any kind.

best wishes..

Answer 5

It will analysis cost of product