Course Overview
Essential Cost Benefit Analysis : The cost benefit analysis course picks up on essential aspects of business and financial acumen to further develop the skills and confidence for investment decision making. Cost-benefit analysis (CBA) involves the use of microeconomics to formally assess the costs and benefits of different projects or investments.
By acquiring this required skill of constructing cost benefit analysis, it will contribute effectively to the organization performance by improving business decision making skill. This programme will highlight methods used by top management from business and finance function which are relevant today for organisation long term success.
This course provides you with the conceptual foundations, framework and practical knowledge you will need to both conduct CBA.
Who Should Attend
This programme is suitable for:
- Staff with financial responsibility
- Business and financial analysts
- Commercial accountants
- Project managers
- Budget analysts
- Finance executives and vice presidents
- Controllers and treasurers
- Professionals seeking a refresher in financial and investment analysis
Course Objectives
Upon completion of this programme, participants will be able to:
- Understand the advantages of Cost-Benefit Analysis (CBA) in a dynamic and changing business environment.
- Contribute more effectively to corporate investment strategy through cost reduction and value creation initiatives.
- Understand and design a structured CBA framework using key analytical steps.
- Identify both direct and indirect, tangible and intangible costs and benefits.
- Evaluate relevant costs and benefits for data-driven business decision-making.
- Prepare a complete Cost Benefit Analysis for projects and business investment decisions.
Training Approach
Where appropriate, activities will include the following:
- Lecture and Video Presentation
- Faciliated Group Discussions
- Practical exercises and case studies
Course Content
Introduction to Costs-Benefits Analysis (CBA) in Strategic Long-term Planning
- Conceptual foundations of costs benefits analysis
- Basic finance key terms and interpretation exercise
- Methods and templates used for business case for investment appraisal
- Projecting and forecasting future costs and benefits
- Estimating costs and benefits
Cost Benefits Analysis (CBA) Framework
- Understand and design the Costs-Benefits Analysis (CBA) Framework
- Identify goals and objectives of project proposals
- Metric for the measurement ie Benefit Cost Ratio (BCR) and Return on Investment (ROI) and key difference
- Identify the costs and benefits
- Assigning value of each costs and benefits
- Comparison of costs and benefits.
Types of costs-benefits analysis (CBA) method – Part 1
- Understanding types of costs for preparation of CBA.
- Concepts of relevant costs, opportunity costs, trade offs and sunk costs
- Cost drivers and activity based costing for cost reduction
- Case study – Performing basic cost benefits analysis for business case document.
Types of costs-benefits analysis (CBA) method – Part 2
- Preparation of incremental analysis (Case Study) report.
- Identifying relevant costs and benefits -Direct vs. Indirect • External vs. Internal • Tangible costs versus intangible
- Breakeven and contribution analysis for new products developments
Concept of Limiting Factor
Understand the concept of limiting factor in resource allocation in project planning.
Data Presentation and Visualisation
- Data visualisation
- Understand, interpret and communicate that data from CBA metric
Case study Method: Application of CBA
- Examples of CBA analysis for public and private sectors investments
- Prepare cost benefits analysis based on case study
- Group presentation on CBA
