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Cost Analysis
Cost-comparison analysis is a detailed assessment that evaluates the costs and resources involved when implementing a specific intervention against alternative options. This type of analysis is crucial for understanding the financial and logistical implications of different choices to ensure the most efficient use of funds and resources.
This methodology proves to be significantly more beneficial than previously outlined in brief summaries. Through this approach, stakeholders can identify the most cost-effective solutions, enhancing the overall efficacy and sustainability of projects or healthcare interventions.
Cost-comparison analysis comprises an analysis of the costs and resource use associated with the intervention compared with that of the comparator (s).It is much more advantageous than what we have tried to explain in a very short way mentioned below:
| Junior Accountant | Cost in US | Cost In India |
|---|---|---|
| Annual Salary | 30,000 | 16,000 |
| Payroll Taxes (8%) | 2,400 | Nil |
| Overhead Costs (10%) | 3,000 | Nil |
| Total Cost | 35,400 | 16,000 |
| Senior Accountant | Cost in US | Cost In India |
|---|---|---|
| Annual Salary | 48,000 | 24,000 |
| Payroll Taxes (8%) | 3,840 | Nil |
| Overhead Costs (10%) | 4,800 | Nil |
| Total Cost | 56,640 | 24,000 |
| Financial Controller | Cost in US | Cost In India |
|---|---|---|
| Annual Salary | 70,000 | 35,000 |
| Payroll Taxes (8%) | 5,600 | Nil |
| Overhead Costs (10%) | 7,000 | Nil |
| Total Cost | 82,600 | 35,000 |
Note
Employee benefit costs in US not included in the comparison
Overhead cost includes cost of leasing computer hardware and maintenance related, software like accounting package licenses, training, floor space and electricity among others
Offshore cost are only estimates; includes wages, infrastructure, training and technology cost
US Salary figures are average figures.