Cost Benefit Analysis in Dubai

Why Cost-benefit Analysis?

Dubai has been evolving as an attractive interstellar space for businesses to flourish and nourish. The possibilities are wide-ranging, but the feasibility is imperative. The feasibility study is made on the basis of a cost-benefit analysis. 

Wise and sensible owners perform the Cost-Benefit Analysis (CBA) before starting a new project or plant to assess all the latent costs and incomes that a company might produce from the project or plant. The conclusion of the examination will determine whether the project is financially feasible or if the company should go for another venture.

Cost-benefit analysis is a process of analyzing the benefits of decisions in a business. It encompasses gaugeable financial metrics such as income earned or costs saved as a result of the decision to continue a project.

CDA is one of the leading Accounting and Auditing firms in Dubai, which has an experienced team of professionals who provide services in Cost-benefit Analysis and other areas of decision-making reports. CDA offers effective cost-benefit to help companies manage cost thereby improving cost efficiency, enhance profitability and make efficient management decisions.

A cost-benefit analysis (CBA) should begin with accumulating an inclusive list of all the costs and benefits linked to the project or decision. Department wise or cost centre wise allocation is a base for these analytical reports.

Costs Involved in Cost-benefit Analysis 

• Direct costs – the direct labour involved in manufacturing, inventory, raw materials, manufacturing expenses.
• Indirect costs - electricity, overhead costs from management, rent, utilities.
• Imperceptible costs - customer impact of pursuing a new business strategy, project, or construction of a manufacturing plant, delivery delays of product, employee impact.
• Opportunity costs - alternative investments, or buying a plant versus building one.
• Cost of potential risks - regulatory risks, competition, and environmental impacts.
• Expenses set aside as provisions
• Management remuneration
• Head office overheads

Benefits of Cost-Benefit Analysis

• Department wise availability of profit
• Helps in decision towards shut down or whether to continue with existing divisions or starting the alternatives
• Proper allocation of workforce
• Helps the inefficient utilization of available resources
• Top-level management can assess the employee wise performance or division wise performance
• Determining the sales price in a way covering the sufficient margin
• Cost Minimise without altering operational efficiency

Significance

• It supports decision making 
• It provides an agnostic, evidence-based view of the issue being evaluated
• It’s free from the influences of opinion, politics, or bias.
• It provides an unclouded view of the consequences of a decision
• It is an invaluable tool in developing business strategy,
• It is an invaluable tool in evaluating a new hire, 
• It is an invaluable tool in making resource allocation 
• It is an invaluable tool in purchase decisions.

Circumstances Utilizing Cost-Benefit Analysis

Cost-benefit analysis is the basis of the decision-making process over a wide variety of standards. In business or finance, the cost-benefit analysis offers inimitable and valuable perception while:

• Assessing new rentals
• Progressing yardsticks for comparing projects
• Determining whether to continue a planned project
• Considering investment occasions
• Gauging social aids
• Judging the desirability of suggested policies
• Measuring change initiatives
• Determining effects on stakeholders and participants

Why CDA?

It’s imperative to analyze all the circumstances and work through all the steps thoroughly without getting biased to economize or to make assumptions on views or best conjectures. CDA’s cost-benefit analysis is as comprehensive as possible. Our experts take a broad view of costs and benefits, including indirect and longer-term effects, on which the interests of all stakeholders who will be affected by the program, are reflected. We examine and assess all the environments thoroughly and come into a better conclusion which is suitable for your business. 

CDA services in the field of business hover over a wide area that includes CFO Services, Auditing Services, Accounting & Bookkeeping Services, Accounting Software services, Due Diligence Services, and Tax Filing & VAT Consultancy services.

Our professional experts are highly talented and customer-centric who can assure you a cost-effective and quality service as per your requirement in compliance with the FTA directions. 

If you would like to start a company or you have any queries regarding your current business, feel good to contact us. CDA is there for your assistance! 

Contact us, and our expert will give you one-hour Free Consultation on cost-benefit analysis in Dubai.