Cost Effectiveness Analysis Report - Business Development Module

This report provides an in-depth analysis of cost effectiveness, focusing on its application in business development. It explores the concept of cost effectiveness as a method of comparing costs to outcomes, emphasizing the importance of measuring performance and aligning with strategic goals. The report highlights the significance of measuring inputs, outputs, and outcomes to assess efficiency and effectiveness. It also examines the role of cost effectiveness in budget allocation, performance measurement, and the development of initiatives. Additionally, the report provides examples of how cost effectiveness is utilized in annual reports and forecasts, and outlines the key components of an effective performance measurement system, including clear goals, accurate data, and feedback mechanisms. The report references various sources, including Betterevaluation.org and the Office of the Auditor-General New Zealand, to support its analysis and recommendations.

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The term analysis of the cost efficient is an alternative which is used in order to conduct a
cost benefit analysis. This is the method which compares all of the relative costs to the
outcomes and the effects when there are two or more than two courses of action (Better
evaluation, 2017).
The term cost effectiveness comprises of the two terms effectiveness and efficiency. This
shows the relationship between inputs, outputs and outcomes. There are many of the strategic
outcomes along with the impacts which are most important. When these are measured along
with the cost effectiveness of the outputs, then the impact would be the measurements which
would equip the management with a better picture of the performance of the company. This is
the impact which measures in the gauge which shows an increased direct effect of the various
activities and the services of a company. The cost effectiveness is all about the relationship
which exists between the investments, which is the input of the dollars and the resources
which is the results or the impact or the outcomes that has been achieved.
There are many of the companies that carry out an internal assessment of the cost
effectiveness in order to make the decisions, allocate the internal budgets and also develop
the initiatives connected with the improvement in the performance. Thor which ere could be
some of the examples that may be included in the annual reports, in the statement of intent or
the forecasting of SSP’s (OAG, 2017).
The main components of an effective system of performance measurement is the defining of
the clear, actionable and the measurable goals that would originate from the overall
objectives of the company and its alignment with the management and the program levels.
Further, the various performance measures could also help in measurement of the way in
which the well mission, management, program goals have bene met. Further, there must be
an establishment of the baselines form which the progress could be attained of the goals that
could be measured. There should also be an accurate, repeatable and a verifiable data. There
must also be a feedback system for supporting a continuous improvement of the various
process, practices and the results of the organisation. This would help in improvement of the
cost effectiveness and also would help in performance measurement (NAP, 2017).

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References:
Anon, (2017). Measuring Performance and Benchmarking Project Management at the
Department of Energy. [online] Available at: https://www.nap.edu/read/11344/chapter/4
[Accessed 28 Aug. 2017].
Betterevaluation.org. (2017). Cost Effectiveness Analysis | Better Evaluation. [online]
Available at:
http://www.betterevaluation.org/en/evaluation-options/CostEffectivenessAnalysis [Accessed
28 Aug. 2017].
Oag.govt.nz. (2017). Part 4: Measuring and reporting impacts, outcomes, and cost-
effectiveness — Office of the Auditor-General New Zealand. [online] Available at:
http://www.oag.govt.nz/2011/improving-annual-reports/part4.htm [Accessed 28 Aug. 2017].