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Cost Benefit Analysis for Business or Project Management

When operating a business or managing a project, there are many moving parts that need to be discussed, evaluated, and/or implemented. A very effective tool that can help that can help in a business decision or project is running a cost benefit analysis. Running this analysis will help a project manager determine how well, or how poorly, a planned action will turn out (John Reh, 2014).

This type of analysis relies on the addition of positive factors and the subtraction of negative ones to determine a net result (John Reh, 2014). When putting a together a cost benefit analysis for a big production company like Bubble Films, it is a big project to own. Having 150 employees spread out into multiple states makes it difficult to get all the information needed. There are many factors when you are dealing with multiple areas of operation to provide an accurate cost benefit analysis. The cost of networking equipment and the power it takes to operate them.

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The amount of cloud space and the security used to protect it and the power to operate. Once you start operating outside of the office, conducting an accurate cost benefit analysis. With the employees working at home, are they working the full day or a few hours here and there? Do you have to pay for their use of electricity and internet, per diem? Is it more cost effective to put everyone in an office rather than work at home? Many questions have to be answered to create and effective analysis.

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Cost benefit analysis is a very important tool to use when pitching a new idea or project. This will show the investor, project manager, or CEO’s exactly where their money is going to go and how they are going to make a return. It also helps identify flaws in the budget and whether a company can expand or downsize.


John Reh, F. (2014). Cost Benefit Analysis. Retrieved from

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Cost Benefit Analysis for Business or Project Management. (2016, May 13). Retrieved from

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