Cost Per Output and Cost Per Outcome

Cost per Output and Cost per Outcome

The cost per output and cost per outcome is valuable to human service organizations because they tell what the organization has spent. The cost per output and cost per outcome of every service that an organization provides will show how much money was spent for each service. The cost per output and cost per outcome will also show if the services offered by the organization are, in fact, doing well for them. There is no way to find out the financial standing of a human service organization without determining the cost per output and cost per outcome. The cost per output and cost per outcome also assist in finding the direct and indirect costs of agencies and organizations. The cost per output and cost per outcome can assist in letting the organization know how much to charge for the services they offer. Not determining the cost per output and cost per outcome could cause many things to happen within a human service organization. One thing that could happen is the budget could get messed up. There would be no planning of the budget, no way to tell how much to pay employees, and there would be no way to determine how much to charge for services. Another thing that could happen is that the direct and indirect costs could get messed up. Not keeping track of the cost per output and cost per outcome could cause the organization to overspend. All of these things, caused by not keeping track of cost per output and cost per outcome, could ultimately cause the organization to close down. Keeping track of the cost per output and cost per outcome is very important to the success of human service organizations.