AIS Report: Cost-Benefit Analysis of Smart Shopping Trolley

This report presents a cost-benefit analysis of implementing a smart shopping trolley system in Mega Mart. It examines the costs associated with acquiring, maintaining, and potentially repairing the trolleys, including fixed costs and maintenance expenses. The analysis also explores the benefits, such as improved customer shopping experiences, better product tracking, potential for increased customer satisfaction and loyalty, reduced manpower costs, and streamlined accounting and billing processes. The report emphasizes the importance of quantifying these costs and benefits to make informed investment decisions, assessing the feasibility of such a technological advancement. References to relevant literature on cost-benefit analysis are included, providing a framework for the evaluation.

Running head: ACCOUNTING INFORMATION SYSTEM
Accounting Information System
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Cost and Benefit Analysis:.........................................................................................................2
References and bibliography:.....................................................................................................4

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Cost and Benefit Analysis:
Every business organisation is always trying to enhance their technologies and to
improve their products and services. In this paper the case study of Mega Mart Smart
Shopping Trolley, the investment in the smart trolley have been analyzed in terms of costs
and benefits arising from it. Whenever any investment is made in any long-term assets the
costs associated with such investment and the benefits arising from such assets must be
analyzed before making such investments.
To give a better shopping experience to the customers of the Mega Mart, the IT
department of the Mega Mart has developed and designed a smart shopping trolley fitted with
a LCD display unit and guided by the infrared system. It is guide the customer to locate any
particular products, to give them the price information and the total spending for the goods.
This is a completely new and innovative idea to be introduced in the supermarkets and could
be very much successful as well. The trolley can scan products which have been taken by the
customers and send that information to the accounts personnel who will be finally making the
bill. The company is planning to introduce this system in two of their supermarkets and if
they become successful and beneficial then, they would be implementing it in all of their
supermarkets outlets (Mishan 2015).
Now the cost associated with it can be analyzed. To make this happen they need to
order to some vendor to manufacture such smart shopping trolley for them with the same
facilities and features as designed by their IT team. It will cost them a huge amount of
money. The cost incurred for the acquisition of such trolley would become the fixed cost and
would be capitalized in the books of accounts. It has some electronic devices and
components, which needs regular maintenance and it will incur some regular maintenance
costs to them. The trolleys would be used by the customers themselves; therefore there is a

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chance of damage to the trolley for miss handling by the customers. All these costs aspects
needs to be considered while making the investment decision to such a smart trolley (Mishan
2015).
Now comes to the point of benefits which may arise from such investment in the
smart trolley. The trolleys would be a self servicing one; hence it can give a better shopping
experience to the customers as well as better tracking of the materials picked up by the
customers for purchase. It gives a complete shopping guide with the price calculation to the
customers which may increase customer satisfaction and may increase in number of
customers. An enhanced and improved shopping experience would not only retain the
existing customers also it would help them to create new customer base in the market. It will
reduce the manpower costs as less number of manpower will be required in the floor to guide
the customers to locate products and to choose products. Lastly, the accounting and billing
would be much more easy as the products gets scanned as and when the products is picked up
and kept in the trolley, the same information can easily be used for billing. Therefore, all
those costs and benefits needs to be considered and calculated in numeric figures while taking
such a business decisions which may exhibit the feasibility of such investment (Mishan
2015).

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References and bibliography:
Boardman, A.E., Greenberg, D.H., Vining, A.R. and Weimer, D.L., 2017. Cost-benefit
analysis: concepts and practice. Cambridge University Press.
Mishan, E.J., 2015. Elements of Cost-Benefit Analysis (Routledge Revivals). Routledge.
Nas, T.F., 2016. Cost-benefit analysis: Theory and application. Lexington Books.
Pearce, D.W., 2016. Cost-benefit analysis. Macmillan International Higher Education.