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Question: Discuss About The Cost Effectiveness And Resource Allocation? Answer: Introducation Cost effectiveness is one of the main aims of firms; it is imperative for the management to consider if it is part and parcel of the resource allocation. The first step is to apply the standardization in cost management. Standardization of cost management is a significant step that ensures that the same standards are used in the process of monitoring the overall costs of the operations. The other step relates to the implementation of activity based costing[1] the method is paramount in the identification of the actual costs that are accrued in production, selling and delivering the products and services that the company deals with. Nonetheless, variance analysis also engages the linking of the budgets with cost effectiveness. Variance analysis shades light on the deviations between the actual costs and the predicted costs. The variance also allows for the comparison of the companys costs with those that are incurred by other companies in the industry. Through the variance analysis, m anagers can identify the critical success factors and the weaknesses. With this, the managers can come up with policies that will help them improve their performance. Process of Resource Planning The process of resource planning is vital in the achievement of the objectives of the business. The first step involves defining of the project of the business. The next step is to formulate the strategies and the measures to take. The third step is to implement the strategies and the measures. Lastly, the results can be utilized in adapting and improve the business.[2] The process of resource planning is determined by the way resources are allocated. If resources are properly allocated then the process of resource planning will run smoothly. Model for measuring resultant resource planning The model that will be significant in this case will be the logical model. The model will aid in the measuring of the performance of the resource planning. The model will involve the stake holders where they will in a position to access the performance and the direction of the organization. The logical model creates a room where the impact of the resource planning on the objectives of the company can be checked. Various factors must stir the implementation of resource planning. For example, changes in the behavior of the employees and in the norms of the society, the involvement rate, the levels of customer satisfaction and the capacity of the resource planning to help in the improving of the services and the goods that are rendered[3] The tolerances that will trigger implementation will include spending of more resources to factors that need more attention such as customer satisfaction and also in promoting of transparency throughout the organization so as participation by all is en couraged. The tolerances arise due to the dire need to encourage possible business decisions, create accountability and promoting effective and efficient utilization of resources. Process for comparing the forecasted budget The first step involves coming up with variance reports. The report will state the deviation that exists between the actual costs and the predicted costs of the organization. The report can be in the form of a table. The other step is to look into the components that constitute of costs and then justifying why the variances are available. The next step is to consider the effect that the variances have on the fixed costs. Likewise, one has to consider the impact on them on variable expenses. All these can be made easier through the use of tables.[4] Afterward, it's a chance to give conclusions and come up with recommendations. The conclusion and recommendations will form the way forward of how to deal with the situation at hand. In the allocation of the budgets, all the recommended individuals should be involved. Then the roles of budgeting should be properly delegated. The resultant of the measurement The result of the measurement will be predetermined by parameters in the logic model. The model aims at indicating if the resource planning is favorable or unfavorable. The model will be tested through it proving that it has parameters that will produce the desired results. The parameters in the model include the encouragement of the use of accurate data, the information should also be reliable. The parameters also instigate the use of resources that can be tested to identify their validity. In addition, the model allows for conclusions to be made should be justifiable by the model. The model should be that which can allow the implementation of transparency that will allow evaluation and assessment to be made with ease. References Cassidy, A., A practical guide to information systems strategic planning. CRC press, 2016. Estampe, D. et al., A framework for analyzing supply chain performance evaluation Models,International Journal of Production Economics, vol. 142, no.2, 2013, pp. 247- DRURY, C.,Management and cost accounting. Springer, 2013. Marseille, E.et al., Thresholds for the costeffectiveness of interventions: alternative approaches,Bulletin of the World Health Organization,vol. 93, no. 2, 2015. pp. 118- [1] Marseille, E.et al., Thresholds for the costeffectiveness of interventions: alternative approaches,Bulletin of the World Health Organization,vol. 93, no. 2, 2015. pp. 118-124. [2] Cassidy, A., A practical guide to information systems strategic planning. CRC press, 2016. [3] Estampe, D. et al., A framework for analyzing supply chain performance evaluation models,International Journal of Production Economics, vol. 142, no.2, 2013, pp. 247-258. [4] DRURY, C.,Management and cost accounting. Springer, 2013.