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費用対効果Cost-Effectiveness

Learn in the textbookComponents of a Systemization Plan

DefinitionCost-effectiveness (費用対効果) is the approach of comparing what systemization costs with the benefits it brings, to judge whether the investment is worthwhile.

ExplanationSome benefits can be put in money terms, such as lower labor costs, while others, such as higher customer satisfaction, are hard to price. ROI (return on investment), a typical indicator, is the profit gained as a ratio of the amount invested. The payback period (回収年数) is the number of years it takes for the yearly net benefit, added up, to reach the initial investment.

AnalogyIt is like weighing a slightly pricier commuter pass: if it cuts transfers and saves time every day, is the difference worth paying?

Memory hookThe 対 in 費用対効果 means facing each other. Picture costs and benefits set face to face on the two pans of a balance.

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