cost benefit analysis

cost benefit anaylsis
done in order to understand the importance of results which company will yield on the expenditures company did. Cost benefit anylsis is done to analyse different projects which comes in front and to judge which project is the best for the company. cost benefit anaylsis is very important for our country because its still a developing country . bcoz of this we have limited resources so automatically vscarfice many opprotunties in order to stick to one opportunity/ project. cost benefit analysis focus on positive aspects and subtract negative aspects and provide us net results on the bases of which company take decisions.
cost benefit analysis is down to achieve cost benefits by cutting down expenses on tangible and intangible expenses and this is the best way to explain higher autorities about the effectiveness of CBA and how this work in the favour of the company & help in cutting down cost.
Example - Should we hire an additional sales person or assign overtime? here , quality and cost will be affected if assign overtime to someone then quality of the work will definately suffer and if additional sales person will be hired the cost will increase so, its difficult to take decision.

CRITICAL ANALYSIS OF CBA

• too much focus on CBA affect work quality
• CBA reduces the scope of expansion and promotion
• CBA reduces risk taking capacity of employer
• CBA at time focus the person to ignore good opportunities
• CBA if affect the faclities given to employees then this create differences and problems
• results provided by cost benefit analysis can affect future scope of the company
• CBA is also implemented on production dept. in order to get max. results in short duration but this affect the quality of the product and create pressure/stress on employees
• creativity / innovation level reduces iin order to reduce cost of maunfacturing goods

MEDIA INDSTRY & CBA

• media industry is different from other indutries because media include alot of money which affect the execution of CBA
• less money = less creativity = no media activity
• CBA and media industry can't go hand in hand bcoz this will affect the quality of media
• profit or loss after implementing CBA in media industry is difficult to calculate

conclusion

its like a game and its working depend on 2 things industry nature and the way of implementing this technique and analysis of result after implementation. and its difficult to work with this techniques bcoz of limited funds and inefficient utilization of resources