WHAT IS COST ANALYSIS?
Cost analysis (also called economic evaluation, cost allocation, efficiency assessment, cost-benefit analysis, or cost-effectiveness analysis by different authors) is currently a somewhat controversial set of methods in program evaluation. One reason for the controversy is that these terms cover a wide range of methods, but are often used interchangeably.
At the most basic level, cost allocation is simply part of good program budgeting and accounting practices, which allow managers to determine the true cost of providing a given unit of service
THREE TYPES OF COST ANALYSIS IN EVALUATION:
Cost allocation, cost-effectiveness analysis, and cost-benefit analysis represent a continuum of types of cost analysis which can have a place in program evaluation. They range from fairly simple program-level methods to highly technical and specialized methods. However, all have specialized and technical aspects. If you are not already familiar with these methods and the language used, you should plan to work with a consultant or read some more in-depth texts .
COST ALLOCATION: Cost allocation is a simpler concept than either cost-benefit analysis or cost-effectiveness analysis. At the program or agency level, it basically means setting up budgeting and accounting systems in a way that allows program managers to determine a unit cost or cost per unit of service. This information is primarily a management tool. However, if the units measured are also outcomes of interest to evaluators, cost allocation provides some of the basic information needed to conduct more ambitious cost analyses such as cost-benefit analysis or cost-effectiveness analysis. For example, for evaluation purposes, you might want to know the average cost per child of providing an after-school tutoring program, including the costs of staff salaries, snacks, and other overhead costs.
Besides budget information, being able to determine unit costs means that you need to be collecting the right kind of information about clients and outcomes. In many agencies, the information recorded in service records is based on reporting requirements, which are not always in a form that is useful for evaluation. For an evaluation, however, you might want to be able to break down that number in different ways. For example, you lly require more visits . lot of planning. Larger agencies often hire experts to design data systems, which are called MIS or management-and-information-systems.
If you are working for an existing agency, your ability to separate out unit costs for services or outcomes may depend on the systems that are already in place for budgeting, accounting, and collecting service data. However, if you are in a position to influence these functions, or need to supplement an existing system, there are a number of texts that discuss the pros and cons of different ways of budgeting, accounting, and designing MIS or management-and-information-systems
find enclosed herewith one such a cost methodology prepared by me for one of project in the year 2010 at mumbai. in this you will find b.o.q, specification, costing methodology etc. presume it will enhance the costing manager capabilities.
Cost analysis (also called economic evaluation, cost allocation, efficiency assessment, cost-benefit analysis, or cost-effectiveness analysis by different authors) is currently a somewhat controversial set of methods in program evaluation. One reason for the controversy is that these terms cover a wide range of methods, but are often used interchangeably.
At the most basic level, cost allocation is simply part of good program budgeting and accounting practices, which allow managers to determine the true cost of providing a given unit of service
THREE TYPES OF COST ANALYSIS IN EVALUATION:
Cost allocation, cost-effectiveness analysis, and cost-benefit analysis represent a continuum of types of cost analysis which can have a place in program evaluation. They range from fairly simple program-level methods to highly technical and specialized methods. However, all have specialized and technical aspects. If you are not already familiar with these methods and the language used, you should plan to work with a consultant or read some more in-depth texts .
COST ALLOCATION: Cost allocation is a simpler concept than either cost-benefit analysis or cost-effectiveness analysis. At the program or agency level, it basically means setting up budgeting and accounting systems in a way that allows program managers to determine a unit cost or cost per unit of service. This information is primarily a management tool. However, if the units measured are also outcomes of interest to evaluators, cost allocation provides some of the basic information needed to conduct more ambitious cost analyses such as cost-benefit analysis or cost-effectiveness analysis. For example, for evaluation purposes, you might want to know the average cost per child of providing an after-school tutoring program, including the costs of staff salaries, snacks, and other overhead costs.
Besides budget information, being able to determine unit costs means that you need to be collecting the right kind of information about clients and outcomes. In many agencies, the information recorded in service records is based on reporting requirements, which are not always in a form that is useful for evaluation. For an evaluation, however, you might want to be able to break down that number in different ways. For example, you lly require more visits . lot of planning. Larger agencies often hire experts to design data systems, which are called MIS or management-and-information-systems.
If you are working for an existing agency, your ability to separate out unit costs for services or outcomes may depend on the systems that are already in place for budgeting, accounting, and collecting service data. However, if you are in a position to influence these functions, or need to supplement an existing system, there are a number of texts that discuss the pros and cons of different ways of budgeting, accounting, and designing MIS or management-and-information-systems
find enclosed herewith one such a cost methodology prepared by me for one of project in the year 2010 at mumbai. in this you will find b.o.q, specification, costing methodology etc. presume it will enhance the costing manager capabilities.
