category Categorising Costs

Categorising costs is essential for understanding the financial impact of different processes. Costs can be grouped into categories such as:

• Fixed Costs: Expenses that remain constant regardless of activity levels, such as equipment or salaries.
• Variable Costs: Costs that vary with the level of activity, like utility bills or raw materials.
• Indirect Costs: Overhead costs that are not directly tied to a specific process but are essential for operations.

account_balance Cost Per Transaction

Calculating the Cost Per Transaction (CPT) is a critical metric for evaluating process efficiency. It involves dividing the total cost of a process by the number of transactions completed. This metric helps:

• Identify high-cost processes for improvement.
• Benchmark performance against industry standards.
• Evaluate the impact of cost-saving initiatives.

schedule Process Efficiency

Measuring process efficiency is key to identifying bottlenecks and optimising operations. Metrics include:

• Average Time Per Process: Calculating the time taken to complete a single process helps identify inefficiencies.
• Cycle Time: The total time taken from the start to the end of a process.
• Throughput: The number of processes completed within a specific time frame.

description Cost Benefits Example

Explore our Cost Benefit Analysis Example page to see practical applications of these principles. The example includes categorising costs, calculating Cost Per Transaction (CPT), and assessing process efficiency within the context of the Government Efficiency Framework (GEF). It offers actionable insights into improving decision-making and resource allocation.