Checkpoint

Cost Per Output and Cost Per Outcome Cost per output and cost per outcome is very important to a human service organization, the reason for this is because the numbers provides the agency with a cost analysis of how much the organization or agency is spending to perform their daily functions and tasks. If the human service organization do not know what it cost to achieve a positive output/outcome, they will not know how much to charge for their services. If the organization or agency includes a budgeting method, the budgeting foundation can be used to determine the how well the human service organization will be successful. Human service organizations receives funding based on the number of clients or the people they are helping, while taking into account the cost per output from the services that are provided. Human service agencies receives incentives such as bonuses for how the agency workers perform on the job, this is based on the cost per outcome. By using the methods of output/outcome, human service organizations will be able to assess their budget and achieve the services they want. A budget outline can help to determine what the agency can afford and what the agency cannot afford such as; the operations, salaries, wages, and how many clients they need to keep the profits coming in and going out. If human service agencies are unable to determine the per output and the per outcome, it maybe some holes in the budgeting system and the direct and indirect costs maybe over spent and the money will not be allocated. If there is not

a budget plan, the organization will have no way of knowing how much employees are being paid and what the agency charge for their services.