3.3 Cost Benefit Analysis

The purpose of  a cost benefit analysis allows you to step by step see how well or how not so well your business is doing. It allows us to find out what the total cost of ownership for the business. In this process you find out the nonrecurring costs and the recurring costs. Nonrecurring costs are costs that usually dont continue after. Recurring costs are ones that are ongoing that keep occuring throughout the cycle of the system. Then you add those together and find out the total cost. Then you figure out the benefits and the total benefits. After that you take the total cost and total benefit and subtract them and thats how much you have lost. The reason for a proxy value chart is to help you realize how well you business is doing in the chart view. Just as any other chart, the greatest process is at the top. Dark blue is the process before, the brighter blue is during and the light blue is after. The customer relations did better after than it did at any point. The employee morale did better after as well.