Cost-benefit analysis, also known as benefit-cost analysis, is a methodical process for determining the advantages and disadvantages of potential solutions.
What is cost benefit analysis?
Comparing expected or estimated costs and benefits (or opportunities) connected with a project choice in order to assess if it makes sense from a business perspective is the process of a cost-benefit analysis.
A CBA can be used to compare completed or potential courses of action and to estimate or evaluate the value against the cost of a decision, project, or policy.
It is used to decide which options provide the best approach to achieving benefits while preserving savings in, for example, transactions, activities, and functional business requirements.
It is frequently used to assess commercial deals, project investments, and judgments about business or policy (especially public policy). Consider the U.S.
Before enacting laws or deregulating existing ones, the Securities and Exchange Commission must perform cost-benefit analyses.
