Cost Per Output Cost Per Outcome Week 3 Hsm260

Cost per Output and Cost per Outcome
Desarae Minges
September 27th, 2015
Sean Jones

Cost per Output and Cost per Outcome
Why are cost per output and cost per outcome calculations valuable to a human service agency?  
Cost per output and cost per outcome calculations are valuable and important to human service agencies because they help justify the organization's spending.   Knowing these calculations also helps to establish and keep on track with a budget.   By providing information in detail on each program and service offered and provided, the agency can then assess the benefits of the monies spent on those programs and services.  
Calculating the ratios between the cost per output and cost per outcome allow the organization to show exactly just how much money is being spent to achieve each desired goal or objective.   Without knowing the costs for each output and each outcome are not figured, then there is no foreseeable way to determine how much money is needed to reach a specific goal or objective.   As well as not being able to tell if changes need to be made somewhere,   whether a program needs to be decreased or completely stopped,   or if the program is beneficial and working effectively and efficiently.  
What might happen if a human service agency did not determine the cost per output and cost per outcome?  
If an agency failed to calculate these costs, they would have no way of knowing where the organization stands financially.   They will also have a more difficult time determining direct and indirect costs.   The agency would have a seriously hard time detailing and outlining an accurate budget and without an accurate budget, the organization would not know what monies are available for needed resources and even what is available for employee wages.   The agency could go over budget and overspend greatly causing the agency to ultimately shut their doors for good.