Business Analysis: Cost Benefit Analysis
Business analysis
Also known as cost benefit analysis reviews the sales, costs and benefit projection of a new product. Every company must have profit motivated objective with the new product. Now it’s time to analyze whether the new product is able to fulfill the profit making objective of the organization or not. Business Analysis is a structured methodology that is focused on completely understanding the customer needs, identifying how best to meet those needs, and then “reinventing” the stream of process to meet those needs.
Benefit of business analysis: A surviving idea is expanded into a concrete business proposal. In fact is shows attractiveness of the project. That means management (a) identifies product features (b) estimates market demand, competition and the product’s profitability (c) establishes a program to develop the product and (d) assigns responsibility for further study of the product’s feasibility
The business analyst must be sure about project statement of purpose and project objectives.
Cost of the Project & Means of Financing
Item | Amount(tk) | Land and Building | 3.90 | Machinery | 4.45 | Miscellaneous Assets | 0.75 | P&P Expenses | 1.00 | Contingencies @ 10% on Land and | | Building and Plant & Machinery | 0.85 | | | Working Capital Margin | 2.10 | | | Total | 13.05 | | | Means of Finance | | | | Promoters' Contribution | 3.95 | | | Term Loan from Bank/FI | 9.10 | Total | 13.05 | Debt Equity Ratio | 2.30 : 1 | Promoters' Contribution | 30% |
Financial assistance in the form of grant is available from the Ministry of Food Processing Industries, Govt. of Bangladesh, towards expenditure on technical civil works and plant and machinery for eligible projects subject to certain terms and conditions.
PROFITABILITY CALCULATIONS
Production Capacity & Build-up
As against the rated annual capacity of 300 tones, capacity utilization in the
Also known as cost benefit analysis reviews the sales, costs and benefit projection of a new product. Every company must have profit motivated objective with the new product. Now it’s time to analyze whether the new product is able to fulfill the profit making objective of the organization or not. Business Analysis is a structured methodology that is focused on completely understanding the customer needs, identifying how best to meet those needs, and then “reinventing” the stream of process to meet those needs.
Benefit of business analysis: A surviving idea is expanded into a concrete business proposal. In fact is shows attractiveness of the project. That means management (a) identifies product features (b) estimates market demand, competition and the product’s profitability (c) establishes a program to develop the product and (d) assigns responsibility for further study of the product’s feasibility
The business analyst must be sure about project statement of purpose and project objectives.
Cost of the Project & Means of Financing
Item | Amount(tk) | Land and Building | 3.90 | Machinery | 4.45 | Miscellaneous Assets | 0.75 | P&P Expenses | 1.00 | Contingencies @ 10% on Land and | | Building and Plant & Machinery | 0.85 | | | Working Capital Margin | 2.10 | | | Total | 13.05 | | | Means of Finance | | | | Promoters' Contribution | 3.95 | | | Term Loan from Bank/FI | 9.10 | Total | 13.05 | Debt Equity Ratio | 2.30 : 1 | Promoters' Contribution | 30% |
Financial assistance in the form of grant is available from the Ministry of Food Processing Industries, Govt. of Bangladesh, towards expenditure on technical civil works and plant and machinery for eligible projects subject to certain terms and conditions.
PROFITABILITY CALCULATIONS
Production Capacity & Build-up
As against the rated annual capacity of 300 tones, capacity utilization in the