The following worksheet can assist in
the completion of a true cost analysis.

 In-House:

+

Activity Costs, inclusive of labour and overhead

+

Raw Materials, inclusive of shipping, storage, handling, and overhead

+

Cost of Invested Capital

+

Estimated impact of outsourcing on costs and revenue

=

Total Costs of performing activity in-house

--V E R S U S--

Outsource:

+

Proposal for outsourcing

+

Anticipated future pricing adjustments

+

Additional one time costs of outsourcing

+

Additional on-going costs of outsourcing

=

Total cost of outsourcing activity