To calculate benefits realized after costs, don't we need to include the costs in the past 2 years?
Get Active in Our Amazing Community of Over 453,000 Peers!
Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Case Partners to connect and practice with!
Includes costs in the first 2 years?
Overview of answers
Upvotes
Best answer
Well, question for you….did we save those costs from the past 2 years thanks to our changes?
Was this answer helpful?
Sign up for free to read all answers.
Sign up for free to read all answers.
Thanks for the quick response, Ian! No, so I would focus on the cost savings. If the interviewer specifically asks about the benefits after the costs, I would ask about the costs in the first 2 years. Am I overanalyzing it?
You are overcomplicating indeed! The 1st 2 years are sunk cost. There are NOT benefits/cost savings from the 1st to years - they are already behind us. Therefore, we just focus on the final year savings :)