An organisation is moving its headquarters. Managers recognise that this will lead to disruption and a short-term loss in productivity. How would this effect be categorised in a cost-benefit analysis?

An organisation is moving its headquarters. Managers recognise that this will lead to disruption and a short-term loss in productivity. How would this effect be categorised in a cost-benefit analysis?

• A. A. As an intangible cost
• B. B. As a tangible cost
• C. C. As an intangible benefit
• D. D. As a tangible benefit

Answer: (B)

In a cost-benefit analysis, the short-term loss in productivity due to the relocation of an organization's headquarters is categorized as a tangible cost. Tangible costs are those that can be directly measured and quantified, such as financial implications or resource allocation. The disruption caused by the relocation will likely result in measurable outcomes such as reduced output, potential deadlines not being met, and overall lower effectiveness within the organization during the transition period. This effect can be assigned a specific monetary value, making it a tangible cost that impacts the overall financial performance of the organization. Recognizing this impact is crucial for managers as they plan and prepare for the relocation, enabling them to take appropriate steps to mitigate these costs and support their teams through the transition. Thus, it becomes clear why the short-term productivity loss is identified as a tangible cost rather than an intangible benefit or cost, which would otherwise denote effects that are not easily quantifiable or measurable in the same direct manner.

In a cost-benefit analysis, the short-term loss in productivity due to the relocation of an organization's headquarters is categorized as a tangible cost. Tangible costs are those that can be directly measured and quantified, such as financial implications or resource allocation. The disruption caused by the relocation will likely result in measurable outcomes such as reduced output, potential deadlines not being met, and overall lower effectiveness within the organization during the transition period.

This effect can be assigned a specific monetary value, making it a tangible cost that impacts the overall financial performance of the organization. Recognizing this impact is crucial for managers as they plan and prepare for the relocation, enabling them to take appropriate steps to mitigate these costs and support their teams through the transition. Thus, it becomes clear why the short-term productivity loss is identified as a tangible cost rather than an intangible benefit or cost, which would otherwise denote effects that are not easily quantifiable or measurable in the same direct manner.