The answer is cost benefit analysis.
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.
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A. The path from your eyes to the object they're viewing