Getting started the cost analysis process at a

Getting started: the cost analysis process at a glance Before you start conducting the actual analysis, make sure you: 1. Spend about one to two hours navigating through the six steps and glance over the FAQs 2. Review with care the what do I need to get started section of the FAQs 3. Read one or two case studies to understand how other organizations have used cost analysis 4. Review the process overview below Cost analysis process: Determine purpose and scope Process • Determine the • Determine purpose relevant data to gather • Define your programs Timeline estimate Gather financial data • Gather data Allocate direct costs • Allocate direct costs by programs (or sites) • Determine programmatic scope • Modify source and format of data, where necessary • 2 -3 days • One week to a • 2 -3 days month People to • Management involve team (beyond • Program the person directors conducting analysis) • Finance and HR departments • All staff (if doing staff time interviews) Allocate indirect costs Check your data • Identify cost drivers • Check your analysis for both • Allocate accuracy indirect costs and logical by programs soundness (or sites) Apply this knowledge • Assess the results and draw implications for your organization • Make decisions based on data • Identify next steps • One to two weeks • Program or site directors • Finance department • One day • Depends on organization • Management team • Finance department TBG 1