Question

Define tangible and intangible benefits and costs. What is the difference between the two?

Answer 1

Tangible benefits and costs are those benefits and costs associated with the physical substances, i.e., those which can be touched. For examples, raw materials, buildings, etc.

Intangible benefits and costs are those benefits and costs associated with those which cannot be touched. For example, brand image, good will, etc.

It is easier to measure the tangible benefits and costs. For example, cost of a building, amount saved in purchase of raw materials, etc.

It is very difficult to measure intangible benefits and cost. For example, one cay good or bad image. But cannot quantify how good or bad the image is