Workflow Templates: Cost-Benefit Analysis Checklist

Clearly state the purpose of the cost-benefit analysis

Identify the project scope and constraints

Establish the objectives and outcomes expected from the project

List all the direct costs associated with the project, including materials, labor, and resources

Estimate indirect costs such as administrative expenses and overhead

Account for intangible costs like environmental impact, social changes, and potential risks

Quantify the direct benefits such as revenue increases or cost savings

Evaluate indirect benefits like improved productivity, customer satisfaction, or brand reputation

Consider long-term benefits and how they align with strategic goals

Calculate the total costs and total benefits over the project's lifecycle

Use appropriate discounting methods to determine the present value of costs and benefits

Perform a sensitivity analysis to understand how changes in assumptions affect the outcome

Identify alternative solutions or approaches to achieving the same objectives

Conduct a cost-benefit analysis for each alternative to compare their feasibility

Consider the non-monetary factors that might influence the decision

Summarize the findings of the cost-benefit analysis in a clear and concise manner

Provide a recommendation based on the analysis and alignment with strategic goals

Outline the next steps and any contingencies for project implementation

Cost-Benefit Analysis Checklist