Cost–benefit analysis (CBA), sometimes called benefit costs analysis (BCA), is a systematic approach to estimating the strengths and weaknesses of alternatives (for example, in transactions, activities, and functional business requirements).

1. Cost $ benefit Analysis of payroll System
Development Cost
Software purchasing cost which includes:
 Software cost plus selection and purchasing cost
 Project team employment costs.
Setup Cost
 Cost of training staff for new system while training staff recruitments
 Cost of computer hardware and other equipment which might have a residual value at the
end of projected life.
 Cost of accommodation of any new furniture required to house new system
 Cost of purchase of stationary ,disks and other consumables for initial system supplies
Operational cost
 Operational staff –full employment cost
 Cost of purchase and storage of stationary
 Maintenance and standby cost- contract or estimation of occurrence cost
Quantified and valued
 Cost would be saved because instead of taking help of the third party the organization
itself would be able to maintain their needs.
 Time would be saved because more work would be done in less time.
Quantified but not valued
 Efficiency would increase.
 Accuracy would be increase because the number of errors would be corrected
continuously.
 More reliable security would be achieved.
Identified but not valued
 Trust would increase
 Improved management information would be increase this should lead to improved the
decision making
 Competitive advantage