Intangible Cost

Tangible costs are the ones you can identify and quantify. We spent $147,568.25 this quarter on toilet warmers for the executive bathrooms. That figure represents a tangible cost.

Intangible costs are the other kind. These are vague and hard to quantify...almost spiritual in nature...but still quite real in terms of the impact on a company.

We took the toilet warmers out of the bathroom. We saved $147,568.25, but morale took a big hit. Now all the executives are moping around all day, barely getting anything done. The lost productivity caused by employee sadness because the company eliminated the toilet warmers is difficult to put a number on. But it does impact the bottom line. It represents an intangible cost.