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Background of the study
Payroll is the sum of all financial records wherein business or companies
pay its employees for work performed during a specific period of time. A payroll
system involves everything that has to do with the payment of employees and the
filing of employment taxes on a computerized manner. A payroll system may be
manual or computerized and handle in-house or outsourced to another provider.
The payroll process typically includes calculating employee pay, recording
payroll transactions and determining and paying payroll taxes. Without
implementing this kind of system, the company would have difficulty in computing
for payments for services or work done by employees. Payroll system isnt just a
requirement nowadays. It is now essential to companies.
Computerization is a control system that manages process in industrial
workplace. It reduces human errors and processing time, thus it can boost
productivity and resulted into high quality product produce. In Information System
(IS), computerization is concerned about interrelating different but interdependent
transactions. This can result in a system with well-integrated processes that can
perform much faster and more accurate than a manual system.

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The GEMPHIL technologies Inc., is using a system that is out to date,

often confusing and sometimes lagging, and that it is not user friendly. The
system also is not liable or aware of the changes of the employees information.

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Statement of the Problem

General Problem
The GEMPHIL Technologies Inc., is using a system that is out to date,
often confusing and sometimes lagging, and that it is not user friendly. The
system also is not liable or aware of the changes of the employees information.

Specific Problem
1. The system of the GEMPHIL Technologies Inc., is not updated.
2. They are using time cards when having a payroll check.
3. They are not aware on the changes of the employees information.

General Objective
As the students of Information Technology, we are motivated to build a
new Payroll system to replace the existing system that is out to date.

Specific Objectives

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1. The GEMPHIL Technologies, Inc. requires a newly presented system to

allow employees to record time card information electronically and
automatically generate pay slips based on the number of hours worked.
This factor will lead to faster, shorter and lessen of processes and
organized of important data.
2. We will develop a system that will improve the GEMPHIL Technologies
Inc. payroll system and calculate payroll transaction easily.
3. We are then obliged to make the system user-friendly to the user by
making it simpler than the existing, implement effectiveness, simplicity,
accuracy and attractiveness of the system. We will implement a system
that can update Employees information by creating an Employee
Information system with add, edit and delete button.

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Conceptual Framework



Make a research
Conduct an interview
Research from:

Systems Analysis using

Data Flow Diagram

Internet and
Initial Interview

Payroll System
for the
employees of

Figure 1.0
This figure shows the conceptual framework or a summary of our
proposed system for GEMPHIL Technologies, Inc.

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Significance of the Study

The proposed system will truly help the whole company to manage
everything faster than the usual. This study will help the employee resulting to a
faster way of computing payrolls. The department responsible for time-keeping
will lighten their duties as it will handle user-friendly transactions. Payroll system
is also providing for the Accountants to improve the preparation of the payments
in a timely manner, manage employee services, hours, pay rates, etc.
Aside from the company, we are also the benefactors of the system
because it will help us to enhance our ability to fully understand on how to create
a computerized system that might help use in the near future.

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Scope and Delimitation of the Study

Scope of the Study
This study is schemed to develop a Computerized Payroll System for
GEMPHIL Technologies Inc. It covers the process of preparing the payslip of
each employee, the overtime exact wages of each employee, including
information such as the daily rate, Gross payment, Net payment, and Deduction
of taxes. The system works in multiple computers and sharing same database by
which it can be used by different departments.
The Proposed system does not support online program or transactions
and will only be available for GEMPHIL Technologies Inc.

Delimitation of the Study

The system is stand-alone and has no networking capabilities. The system
cannot provide an individual print of the employees salary.

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Definition of Terms
The following are defined operationally and technically for clear
understanding of the terms used.

Operational Terms
Bundy Clock This refers to a clock card machine or punch or time
recorder is a mechanical (or electronic) time piece used to assist in tracking the
hours of an employee of a company.
Daily Time Record This refers to a record of how a persons time has
been spent. It is used to calculate pay, asses the efficient use of time, or charge
for work done.
Deduction This refers to business expenses or loses which are legally
permitted to be subtracted from the gross revenue of a firm in computing its
taxable income.
Employee This refers to a person who is hired to provide services to a
company on a regular basis in exchange for compensation.
Gross Pay This refers to total of an employees regular remuneration
including allowances, overtime pay, commissions and bonuses, etc.
Net Pay This refers to the remaining amount of an employees gross
pay, after deductions, such as taxes and retirement contributions, are made

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Overtime Hours is the amount of time someone works beyond normal

working hours.
Payroll This refers to a sum of all financial records of salaries for an
employee, wages, bonuses and deductions. In accounting, payroll refers to the
amount paid to employee for services they can provided doting a certain period
of time.
Payslip - a note given to an employee when they have been paid,
detailing the amount of pay given and the tax and insurance deducted.
Regular Hours considered full-time if they work a standard workweek,
which is generally defined as the maximum amount of regular hours per week
Report This refers to give an official account or statement of as
treasurer reports the receipts and expenditures
Salary This refers to wages received on a regular basis, usually weekly,
bi-weekly or monthly.
Work Hours is the period of time that an individual spends at paid
occupational labor

Technical Terms
Administrator - somebody whose job is to manage the database
Data - individual facts or items of information
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Data Entry - encoding data in the computer

Database - a systematically arranged collection of data
Database Manager - someone that manages or manipulates


MS Access - a relational database management system from Microsoft
that combines relational Microsoft Jet Database Engine with a graphical user
interface and software development tools
Program - The computed salary and wages of the employee
Salary - the compensation received by the employee in either 15 TH or 30TH
of the month
Software - the programs, symbolic languages that organize the
performance of the hardware and through its process
System - an assembly of computer hardware, software and peripherals


Visual Basic - an object oriented event driven programming language

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This contains the discussion of the review of related literature and studies
that has a bearing on the totality of this study.

Related Literature
A. Foreign Literature
Information system takes a very significant role in management life. It greatly
affects and interferes in the management decision, planning, and the
development of new products and or services. The increasing range of
information system connects to a transformation of an organization from using
the traditional or manual information system to a computer base (program and
software) system.
Mike Johnson (2011) defines information system as a set of interrelated
elements that gather, retrieved, process, store, and disseminate information to
reinforce decision making and control in an




indicates that the information system is very important organizing data and
information of the organization
Sherman and Watson (2012) stated that information system as an organized
combination of people, hardware, software, communication networks, and data
resources that collects, transform and disseminate information in an organization.
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The definition indicates that the main focus of the information system or
automated system is broadly detailing on the idea, and organizing information
pertaining to either individual groups, or organization.
Philip Morris (2014) on this part, explains that information system is
composed of inputs, processing units (process, store), and output (sources). In a
broader sense, the information system consists of operations and management
applications to support transactions, processing or decision making activities at
different organization level.
Automated payroll system is considered an information system for it stores
data of the employee receiving its wages and salary, daily time record or
attendance, and other benefits which an employee has to received.
According to Great Martin (2015), management information system plays a
very vital part in making an organization a success or failure. Great Martin (2015)
stated that in designing a system, the following should be taken into
consideration. It should provide a modular architecture, It should have a
coordination of interface, the interface between different modules should be
clearly labeled in the terms of content, frequency, and mode of operation. In
automated payroll system, the manner of doing such is the same. The program
or system should follow a process or a step by step procedure in order to arrive
to a specific function within the system. The design of the must be in conformity
with the existing tools of information technology.

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In a company, payroll is the sum of all financial records of salaries for an

employee, wages, bonuses and deductions. In accounting, payroll refers to the
amount paid to employees for services they provided during a certain period of
time. Payroll plays a major role in a company for several reasons.
From an accounting perspective, payroll is crucial because payroll and payroll
taxes considerably affect the net income of most companies and they are subject
to laws and regulation (e.g. in the US payroll is subject to federal and state
regulations). From an ethics in business viewpoint payroll is a critical department
as employees are responsive to payroll errors and irregularities: good employee
morale requires payroll to be paid timely and accurately. The primary mission of
the payroll department is to ensure that all employees are paid accurately and
timely with the correct withholdings and deductions, and to ensure the
withholdings and deductions are remitted in a timely manner. This includes salary
payments, tax withholdings, and deductions from a paycheck.
Companies typically generate their payrolls at regular intervals, for the benefit
of regular income to their employees. The regularity of the intervals varies from
company to company, and sometimes between job grades within a given
company. Common payroll frequencies include: daily, weekly, bi-weekly (once
every two weeks), semi-monthly (twice per month), and to a somewhat lesser
extent, monthly. Less common payroll frequencies include: 4-weekly (13 times
per year), semi-annually (twice per year), semi-monthly, and annually.

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An automated payroll system enables the employer to process its payroll

through a computerized system. A manual payroll system requires that the
payroll be processed by hand and is therefore a considerably slower procedure
than an automated system. The former makes payroll processing simpler, and
reduces errors, which are more likely with the manual system.

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Related Studies
A. Foreign Studies
In the study conducted by George Carlton (2013), it aims to lift up an
understanding on the issues and concerns with regards to the management of
information and securing information. The study was conducted by assessing the
analysis, design, and management of computer based information system in two
large organizations like British National Health Service Hospital Trust, and a
Borough Council. In this study, George Carlton adopts the research methodology
of interpretative mode of inquiry, where the system was evaluated on the context
of business environment. The finding in the study shows that computer based
information system affects the integrity and totality of the organization.
The automated payroll system uses payroll software to compute all wages.
Payroll software, such as QuickBooks, Pensoft, Z-Pay, Ultipro and Sage
Peachtree calculated gross-to-net earnings based on the data the payroll
representative inputs. Thus, if a terminated employee is due severance pay but
the payroll representative neglects to make the entry, the system will not pay it.
Typically, the system is reliable so long as the entries are correct. The automated
system performs all types of payment; hourly, overtime, double-time, salaries,
commissions, bonuses, pay raises, retroactive pay, wage deductions, auto
payments and tuition reimbursements. Notably, the automated system eliminates
manual paycheck writing. The system automatically generates paychecks and
stubs and enables direct deposit.

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Salary and wage deduction are a necessary part of payroll processing.

The employer must take mandatory withholding from employee paychecks,
including federal income tax, Social Security tax, Medicare tax and usually state
income tax. These taxes can be time-consuming and perplexing to compute
manually. A number of rules are attached to withholding tax calculations. With an
automated payroll system, the software has the rates hard-coded in the system.
It calculates the withholding tax for each employee based on the withholding
condition data input. This reduces the likelihood of payroll tax errors, which can
result in fees from the IRS and the state taxation agency.
According to the researcher of Nyanmaru Computerized Payroll System
(2013) nowadays all establishments are becoming modernized, they use modern
technologies to make their transaction fast, easy, and accurate in order to avoid
waste of time and for the sake of safety and security. It also helps human to solve
and understand complex problem and analysis such us the computational need
of humans. Especially to business establishment or corporation processing
enormous data and complex transaction. Payroll is an example of a complex
transaction because it is a critical business operation dealing with numerous
accounts and produce plenty and confidential files. Payroll is encompasses every
employee of a company who receives a regular wages or other compensation
due to each. Applying manual procedure on a Payroll transaction involving the
vast beat answer in that problem would be computer because computers can
simulate enormous data and can process complex transaction in a fast and
efficient way.

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B. Local Studies
In the study conducted by Ron Richardson (2013), she pointed out that
information system helps to produce record, administer and corresponds data for
the operational and preparation activities of the organization. The likes of
automated payroll system is planned, design and developed to convene positive
specific actions and is built on the objectives that there are management
identification of the need that will sufficiently addressed the problem in manual
way of doing the system.
John Devin (2015), on the other hand stated that the record management
system which also being to the family of information system is an administrative
system which seeks to control, distribution, filing, retrieval, storage, and disposal
of records which created or received by an organization during the operation.
Nowadays, many payroll system implemented in different companies here in
the Philippines because payroll system is one of the most important in
establishing a business firms on how you provide the right and appropriate
benefits for the employees in the company. Business firms must operate within
the boundaries of laws and government regulations, Laws have been developed
not only to protect consumers but also to promote competition among business
and industries. Over half a century on, its fair to say that payroll is now one of
the most commonly automated business operations; and certainly the most
frequently the most used HR Solution that maintaining payroll record is one of the
most important financial tasks in any business. A great payroll is really one of the

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most important issues to pay attention in almost every company. It is impossible

to handle payroll responsibilities with a pen, ledger sheet and calculator, but
nowadays it is more convenient for most companies to use computerized payroll
software. The schools is also not exempted in using a payroll system namely the
study of payroll system for the teachers and staff of Liceo De Calamba (2010) the
researchers (Maligaya, Opea, James Jordan) viewed that Liceo de Calamba
aims to provide high quality of education for their students and to establish great
relationship with their employees by providing them with the right and appropriate
benefits they must enjoy as population of Liceo de Calamba increases, its
system must perform competitively, Payroll system is needed in order to have an
accurate and error free in their payroll process and services.

Researchers (Alvarez, Aldrine, Gecolea) of Krizalen enterprises (2014) uses a

biometrics with online data analytics dashboard to give Krizalen enterprises an
efficient payroll system that can automatically monitor the attendance and trip
tickets of the employees, drivers and helpers with the biometrics technology and
data analytics that would help them in the security and accuracy of the company
payroll and information. Summing up the past situation of payroll inside Krizalen
enterprises, there was need for a system that could help them with employee
information management attendance, monitoring, payroll processes, and
assistance for the manager decision making. With this idea, the proponents
conducted a study for the development of software that can minimize data
redundancy, inconsistency, and manipulation. Employees can view their current
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pay and review their information from the database. And with updating of the
reports that can be viewed through the internet, the manager can view the recent
activities within the proposed system.

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Based on the research or related literature and studies which tackle much on
the information system, automated payroll system happens to one in the family of
information system that store, organize, and process data. In the same manner, it
can be conducted that payroll system implemented for the purpose of automating
the payroll system can give or provide benefits to the business organization in
the same way that other establishments are benefited with the aid of computer
based payroll system. Furthermore, it can also be great help to the payroll
personnel since data will be stored confidentially and data will be generated on a
printable format.
The similarities of the existing and the proposed system are that they contain
a data base of salaries computation together with its deduction and others. The
difference is that the proposed system will contain the database of the
employees and faculty, and also the process of computing a salary based on the
generated report taken from the report generated by the attendance monitoring.
There are many variations of making a computerized payroll management
system on how the client or the owner of the company wants to operate within his
business like the study in Krizalen enterprises that they used a Bio-metrics with
online data analytics dashboard to view information or save the online studied
since 2014 and also the research entitled intuit payroll of intuit, INC. Since 2013
claims that with the use of payroll systems computations of pay checks or
payslips are precise and always on time, taxes are clear and liquefied, and
tracking of employee records are easy and organized. The revolutionary systems
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regarding payroll helps to eliminate tasks made by man and therefore also
eliminating the risk of human errors. As well as payroll outsourcing company,
Oasis outsourcing (2013) believes that through web-based payroll systems, the
Management can access information from in and out of the office. But with
the limited access and multiple levels of security options can provide reliable and
accurate updated records and computations. And also the study of payroll
entitled automated daily time record and payroll system of Laguna water district
(2004) recommended to use a hardware such as iris scan, thumb mark scanner
and other Biometrics innovation for additional security and further technology
advancement should be taken into consideration.

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Chapter 3
Research Methodology

Research Design
The research design to be applied in this study is the experimental and
descriptive methods. Descriptive research describes and interprets what is. This
methodology goes beyond more gathering and tabulation of data and it also
involves the interpretation and analysis of the meaning or significance of what is
described. The experimental research design is to be used to evaluate the
proposed software using questionnaires.
All the necessary data and information for this study were gathered from
unpublished theses, books, and articles from the Internet.

Method Used in Developing the Software Product

The software is to be developed to be used by the GEMPHIL Technologies
specifically the person in-charge of the payroll of the employee. The software
was intended to run on Windows XP.
Visual basic 6.0 will be used in the developing of the GUI while MS Access will
be used for its back-end database application.

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Rapid Application Development (RAD) is a software development

methodology that uses minimal planning in favor of rapid prototyping. The
planning of software developed using RAD is interleaved with writing the
software itself. The lack of extensive re-planning generally allows software to be
written much faster, and makes it easier to change requirements.

Figure 3.0

Four phases of Rapid Application Development (RAD)

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Requirements Planning Phase - combines elements of the system

planning and systems analysis phases of the System Development Life Cycle
(SDLC). User, managers, and IT staffs members discuss and agree on business
needs, project scopes, constraints, and system requirements. It ends when the
team agrees on the key issues and obtains management authorization to

2. User Design Phase - during this phase, user interacts with system
analysis develop models and prototypes that represent all system processes,
inputs, and output. The RAD groups or subgroups typically use a combination of
Joint Application Development (JAD) techniques and CASE tools to translate
users needs into working models.






process that allows users to understand, modify, and eventually approve working
model of the system that meets their needs.

3. Construction Phase - focuses on program and application development

task similar to the SDLC. In RAD, however, users continue to participate and can
still suggest changes or improvements as actual screens or reports are
developed. Its tasks are programming and application development, coding, unitintegration and system testing.

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4. Cutover Phase - resembles the final tasks in the SDLC implementation

phases, including data conversion, testing, changeover to the new system, and
user training. Compared with traditional methods, the entire process is
compressed. As a result, the new system is built, delivered, and placed in
operation much sooner. Its task are data conversion, full-scale testing, system
changeover, user training.

Method Used in Evaluating the Software Product

Descriptive research design will be used to determine the level effectiveness
of the payroll system as a tool in easy computing the payroll of the employee in
terms of reliability, accuracy, and convenience. Albert Rogers stated that
descriptive research design involves gathering data that describe the events and
then organize, tabulates, depicts, and describe the data.
Actual software demonstration and post interviews will be the most reliable
way to identity the quality of the software. Two sets of questionnaires will be
given to the respondents for the assessments of the study and the software.
These questionnaires will determine whether the software meets the criteria and
expectation of the users.

Respondents of the Study

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The proposed study covers the administration and the payroll GEMPHIL
Technologies Inc. The respondents are selected by means of purpose sampling
which is the desired of the proponents base on the requirement of the system.

Data Gathered Tools

Gathering of information regarding the study was through internet, interview
from the actual user, and other related materials for the study. Questionnaires are
also to be used to gather data regarding the evaluation of the software, and the
manual method.

Instruments Used
A two part self-administered questionnaires shall be used to evaluate the
software and existing method. Information of the respondents is shall be
gathered on the first part of the questionnaires. Data regarding evaluation of the
software to determine line accuracy, reliability, and convenience of the software
as compared to the evaluation of the existing method based on the same criteria
shall be gathered on the second part of the questionnaire.

Administration and Retrieval

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A pretest of the software and the questionnaires shall be conducted to

determine if the materials are ready for the evaluation. An actual test was then to
be conducted to

show the respondents capabilities of the software.

Questionnaires shall be distributed to the respondents for evaluation of the

software and the existing method.
The following are the scales of measurements for the evaluation of the
software and the existing method.
Data Gathering Procedure/s and Output
We, the researchers, conducted a paper interview because we cant
manage to do it personally due to hectic schedules and the company is only
operating weekdays. The papers were distributed to the respondents and gave
them enough time to fill up the questionnaires and answers each questions.

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Company Background
GEMPHIL Technologies, Inc., established on February 12, 1991, is a
100% Filipino owned company. They are the producer and supplier of highly
specialize components to major electronics and semiconductor companies with
operations in the Philippines, Asia Pacific, America, and Europe.
They design and manufactured coils and transformers used in RF hybrid
devices applied in the telecommunication and data transmission system, CATV
amplifiers, power coils and transformers for AC-DC, AC-AC, and DC-DC
converters, EMI and RFI filters, degassing coils for monitors, and into assembly
and test of power converters, electronic ballasts, and devastators for industrial

Description of the System

Their current system is using a system that is incorrigibly out to date, often
confusing and sometimes lagging, and that it is not user friendly. The system also
is not liable or aware of the changes of the employees information. This leads to
wrong details when printing up pay slip forms.

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Problem Areas
The GEMPHIL Technologies Inc., is using a system that is out to date,
often confusing and sometimes lagging, and that it is not user friendly. The
system also is not liable or aware of the changes of the employees information.

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System Overview
The system will start when the admin logs in with his/her admin username
and employee password. After logging in, an option will show if you want to
choose the Employee management form of the Payroll form. The employee
information form lets you add, edit, delete or search for existing employee, While
the Payroll form lets you search for the employee with specific work dates, and if
found, data will be shown on the data grid system and now lets you process their
payroll information and print.
The system has the ability to update and maintain employee information
and to automatically generate required outputs including pay checks, reports to
Admin and Accountants.
The system can also compute for the Gross payment, Net income and the
salary deductions given the regular overtime and under time hours worked per

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Existing System (DFD)

Context Diagram

Fig. 3.0

This figure shows the context diagram of the existing payroll system of the
GEMPHIL Technologies Inc. In which, the payroll system flows through a time
card, this was generated in the time clock. In the system, the employee will
receive the tax form and also the payroll check, and after this process, the payroll
report was forwarded to the accounting department.

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Top Level Diagram

Fig 3.1
This figure shows the top level diagram of the existing payroll system of
GEMPHIL Technologies Inc. As shown in the process, it is confusing, out to date,
lagging, and not user friendly. The system is not updated in terms of employees
information. Therefore it was not reliable in getting information.

Proposed System (DFD)

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Context Diagram

Fig. 3.2

This figure shows the context diagram of the proposed payroll system for
the GEMPHIL Technologies Inc.

Top Level Diagram

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Fig. 3.3

This figure shows the top level diagram of the proposed payroll system for
the GEMPHIL Technologies Inc.

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July 27, 2016

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Dear Madam,
We, the Students of ASIATECH College namely, Carl Arvin A. Dimas, Jomar M.
Rebulado, Mark Diether G. Tangcalagan and Jonas N. Constantino taking up
Bachelor of Science in Information Technology, currently enrolled in System
Analysis and Design would like to ask a permission if you may allow us to
conduct a personal interviews regarding to the Payroll System of your company
GEMPHIL Technologies Inc. The information that we gathered will be a big help
in our program System Analysis and Design.
Attached here is the list of Interview Questionnaires, Information Data and
Registration card that can prove that we are students of Asia Technological
School of Science and Arts College.
We are hoping for your response on our request, rest assured that the
information we gathered is highly confidential and for studying purposes only.
Thank you so much and God Bless.

Sincerely Yours,
Carl Arvin A. Dimas
Mark Diether G.Tangcalagan
Jomar M. Rebulado
Jonas N. Constantino
Noted by:

Mrs. Rozaida C. Tuazon

System Analysis and Design Professor

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Name (Optional):________________

Age: __________________

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Gender: _______________________

Occupation: ____________

Please complete the following questions to reflect your opinions as accurately as

possible and to answer factual questions to the best of your knowledge. Rest
assured that the information derived herein is treated with utmost confidentiality.

1. Company Background:
a. What is GEMPHIL Technologies Inc.?

b. When was the company established?


c. How many employees are currently in GEMPHIL?


2. Brief description of the System:


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3. What problems do employee encounters when it comes to payroll?


4. Is there any solution for the problem?


5. How much is the rate per hour?


6. Is there any allowance? How much?


7. How many percent is the Withholding Tax?


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(Screen Layout)

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Screen Layout/Specification

Fig. 3.0
This figure show above is the start of the systems operation. The program
will ask for a valid Employee ID and password. Both inputs are in strings format.

Report/ Form Specification

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Fig. 3.2, Fig. 3.3, Fig. 3.4, Fig. 3.5

This figure shows the form of employees information. It includes add, edit
and delete of the employees information.

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Program/ Module Specification

Fig. 3.6

This figure show above is the start of the systems operation. The program will
ask for a valid Admin username and password. Both inputs are in strings format.

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Figure 3.7 Lets you choose if you want to access Employee management form
or Payroll management form.
Fig. 3.7

The picture shown above lets you manage Employee information. The
search button lets you search for existing records saved on the database; the
edit button next search button lets you modify information about the employee.
Example scenario is when a woman employee gets married, and its middle and
last name should be modified as soon as possible to avoid misleading and wrong
information printed on the payslip.

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Fig. 3.8
This will show if you choose the payroll picture on the right side of the
choose form. To start with the process, youll enter the started days until the end
work date. Once you clicked the find button, Employees information will show up
on the left side of the form with their corresponding ID and Name. Once you
clicked on the ID, The employees payroll information will show up to their
corresponding text boxes and data grid view. Rate per hour, Allowance, and
withholding tax are constant. (Based on the interview). When you clicked
compute button, Gross pay and Net pay are calculated. Then you can print the
information now.

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Fig. 3.9
This is now the printed payslip and can now be distributed to the employee.

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Economic Feasibility
This is where the feasibility could be established by conducting a Market
Analysis or Cost Benefit Analysis. The researcher could choose the appropriate
tool. If the proposed software is costumed for a particular company and there will
a basis for the computation of the operating cost, benefits. Return on Investment
(ROI), Payback Period. The researcher should present under this subsection, the
formula he/she will use in establishing the economic feasibility of his/her studies.

Operating Costs
Operating costs stated the annual of personnel expense, supplies and
equipment costs required for the existing and proposed system, the use of this is
to compare both of them to analyze which save more. The total annual cost for
existing is Php. 387,784.20 and in the annual cost for proposed is Php.

Development Costs
Development cost is incurred during the development of the system are one
time investment, its include the Adequate Software, Hardware requirements,
labor cost, supplies cost, electric consumption, food and transportation cost. And
total development cost is Php. 22,956.57.

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Cost and Benefits Analysis

Cost benefit analysis (CBA) it is important to identify cost and benefit factors.
Its a technique designed to determine the feasibility of a project or plan by
quantifying its cost and benefits. Through this analysis you will be able to
compute the total cost saving, payback period and net saving by use of this
Annual Cost

Existing Cost Proposed Cost

Payback Period

Annual Cost Present Value

Net Saving

End Cumulative Present Value Total

Development Cost

Return of Investment (ROI)

A performance measure used to evaluate the efficiency of an investment or
to compare the efficiency of a number of different investments. To calculate ROI,
the (return) of an investment is divided by the cost of the investment; the result is
expressed as a percentage or a ratio.

The return on investment formula:

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Return of Investment (ROI) (5 years) = ((End Cumulative Present

Value Total Development Cost / End Cumulative Present Value) * 100)

The end cumulative present value formula refers to the proceeds obtained
from selling the investment of interest. Return on investments is a very popular
metric because of its versatility and simplicity is a very popular metric because of
its versatility and simplicity. That is, if an investment does not have a positive
ROI, or if there are other opportunities with higher ROI, then the investment
should not be under taken.

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