Intangible Costs

Intangible costs refer to non-quantifiable impacts that can affect decision-making in a cost-benefit analysis. Unlike tangible costs, which are easily measured in monetary terms (like salaries or materials), intangible costs include factors such as decreased employee morale, loss of reputation, or reduced customer satisfaction. These costs are challenging to measure directly, yet they can significantly influence the overall outcome of a project or decision. In evaluating options, considering both tangible and intangible costs helps ensure a more comprehensive understanding of the potential effects and benefits involved.