Cost analysis template is a analysis sample document that shows the cost analysis process, cost analysis tools for calculating and comparing benefits and cost of project or investments. A well drafted cost analysis sample can help business and organizations to make sound investment and decisions.
Cost Analysis Template Layout
Cost analysis need to consider the types of cost. There are basically two types of cost: direct cost and indirect cost. Direct costs represent the value of all goods, services, and other resources consumed for the product or system. Indirect costs are costs that are not directly accountable to production. Indirect costs include administration, personnel and security costs, and are also known as overhead. It is important to know that indirect costs do not vary substantially within certain production volumes or other indicators of activity.
Cost analysis needs to consider the analysis approach. There are different types of approach for analyzing the cost, bottom up approach and analogy approach are common types. the bottom-up approach is an examination of separate work segments in detail and a synthesis of the many detailed estimates into a total. To use the approach, the analyst need to have an extensive knowledge of the system, activity, or item. analogy approach use the historical data and experience to estimate the cost, to use this approach, the analyst need to have extensive experience.
Cost Analysis Template Design
There are free analysis example you may download for reference, however, you can use common software such as Word or Excel to design your sample cost analysis template based on the analysis needs and requirements. During the development process, it is key to take into account the cost analysis format, cost analysis layout and cost analysis outline.
The first key part in the cost analysis template is the cost analysis overview. In the section, you need to state the background information of the cost analysis, the cost analysis purpose and objectives, you may also give description of the project etc, in the part, you may give definition of the cost analysis, cost analysis can be also defined as cost benefit analysis.
The second key part in the cost analysis sample is the main body part. In the section, you need to give detail analysis of the costs and related benefits. For example, the total Development Cost:__; The total Operation Cost:__; The Total Other Cost:__; The Total Benefits:__ etc.
The last key part in the cost analysis example is the evaluation and comparison. In the section, you need to give your evaluation and recommendations. You may also state the alternatives. For example, the Evaluation Assumption:__; The Evaluation Methodology:__; The recommendation:__.