SAD33-Cost/Benefit Analysis

Cost and benefit categories

There are five categories.

1.Hardware costs: -relate to the actual purchase or lease of the computer and peripherals.

2.Personnel costs include EDP staff salaries and benefits as well as pay for those involved in developing the system.

3.Facility cost: - are expenses incurred in the preparation of the physical site where the application or the computer will be in operation. This includes wiring, flooring, lighting and air conditioning etc.

4.Operating costs: - include all costs associated with the day to day operation of the system, the amount depends on the number of shifts, the nature of the applications and the caliber of the operating staff.

5.supply costs: - are variable costs that increase with increased use of paper, ribbons, disks and the like. They should be estimated and included in the overall costs of the system
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