The document discusses cost-benefit analysis for the food industry. It defines costs and benefits, outlines the process and steps of cost-benefit analysis, provides an example cost-benefit analysis chart for a food industry, and discusses reporting results and action planning. Key points covered include identifying costs like maintenance, R&D, labor versus benefits like increased productivity and cost savings. The process involves brainstorming costs and benefits, assigning monetary values, and comparing totals. An example chart tracks costs and benefits over 5 years. The conclusion is that cost-benefit analysis helps businesses make profitable decisions by precisely defining and quantifying costs and benefits.

1. CostbenefitanalysisforaFoodIndustry
Presented by Moriommun Nasa Shemu
ID:161-34-498

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Introduction
What is cost and benefit?
Process of CBA
Steps of cost benefit analysis

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Cost-benefit Analysis

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Whatiscostand
benefit?
• Cost:
 Maintaining cost
 Research and development
 Environment
 Labor cost
• Benefits:
 Increase productivity
 Reduction in costs
 Saving cost

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Processof CostbenefitAnalysis

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Stepsofcost-benefitanalysis
Step One: Brainstorm Costs and Benefits
Step Two: Assign a Monetary Value to the
Costs
Step Three: Assign a Monetary Value to the
Benefits
Step Four: Compare Costs and Benefits

7. CostbenefitanalysisforaFoodIndustry
Presented by Md.Muhaiminul Islam
ID:161-34-500

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 Key element of CBA
 How to evaluate cost benefit analysis?
 Cost benefit analysis chart for food industry
 Report and Action plan

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KeyelementofcostbenefitanalysisforafoodIndustry
Aim to Identify the cost and benefit
Market Choice
Cost mitigation and risk realization
Time value of money
Compare between cost and benefit
Resources for food industry
Social benefit

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HowtoEvaluatetheCostBenefitAnalysis?
What are the effects on users?
What are the effects on non-users?
Are there any externality effects?
Is there a social benefit?

11. CostbenefitAnalysisChartforafoodindustry
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Costs Year 0 Year 01 Year 02 Year 3 Year 4
Salary of
employee
increases
0 5000 5000 5000 5000
Packaging
cost and
Machine buy
25,100 0 0 0 0
Production
cost
12,500 10,000 8,000 5,000 2,000
Loss of sales 75,200 0 0 5,000 0
Total 11,2800 15,000 13,000 15,000 7,000
Benefit
Profit 0 87,500 87,500 87,500 87.500
Reduced
costs
0 18,750 18,750 18.750 20,000
Total 0 106,250 106,250 106,250 107,500

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ReportandPlanActionforafoodindustry
After analysis we have to take this Steps below:
 Training for employee
 Product development
 Work based learning
 New plan for food industry
 Local Area Action
 Processing technology
 Reduced Manufacturing cost

13. CostbenefitanalysisforaFoodIndustry
Presented by Mahabubur Rahman
ID:161-34-501

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 Key benefit of cost benefit analysis
 Disadvantage of cost benefit analysis
 Limitation of cost benefit analysis
 Conclusion

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Keybenefitofcostbenefitanalysis
Cost benefit analysis enables clear demonstration of ---

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Disadvantageofcostbenefitanalysis

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Limitationofcostbenefitanalysis
Inaccuracies in
quantifying
costs and
benefits
Element of
subjectivity
Cost-Benefit
Analysis might
be mistaken
for a project
budget
Ascertaining
the discount
rate

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Conclusion
Performing cost-benefit analysis is crucial for a business to make profitable decisions. It is vital
that the costs and benefits should be precisely defined with minimal involvement of subjectivity.
The identification and quantification has to be in depth because superficiality can be detrimental
for the business. Cost-benefit Analysis is not just restricted to finding out whether the proposition
or a particular project is feasible or not. It also helps us to ascertain the viability quotients of each
project.
The result of a Cost-benefit analysis model should be viewed as a holistic process rather than
just an end result. While presenting the final result of a Cost Benefit Analysis model, the analyst
should explain authorities about the entire progression. Each step and the rationale behind it is
equally important. Thus Cost-Benefit Analysis models not only helps businesses to ascertain the
viability but also make the most apt decisions.

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