Definitions for cost-benefit analysis
This page provides all possible meanings and translations of the word cost-benefit analysis
an analysis of the cost effectiveness of different alternatives in order to see whether the benefits outweigh the costs
A methodology to help appraise or assess the case for a project or proposal, by estimating the net cost or benefit of the project of proposal.
Any comparison of costs and benefits.
U.S. National Library of Medicine
A method of comparing the cost of a program with its expected benefits in dollars (or other currency). The benefit-to-cost ratio is a measure of total return expected per unit of money spent. This analysis generally excludes consideration of factors that are not measured ultimately in economic terms. Cost effectiveness compares alternative ways to achieve a specific set of results.
Cost-benefit analysis, sometimes called benefit–cost analysis, is a systematic approach to estimating the strengths and weaknesses of alternatives that satisfy transactions, activities or functional requirements for a business. It is a technique that is used to determine options that provide the best approach for the adoption and practice in terms of benefits in labour, time and cost savings etc.. The CBA is also defined as a systematic process for calculating and comparing benefits and costs of a project, decision or government policy. Broadly, CBA has two purposes: To determine if it is a sound investment/decision, To provide a basis for comparing projects. It involves comparing the total expected cost of each option against the total expected benefits, to see whether the benefits outweigh the costs, and by how much. CBA is related to, but distinct from cost-effectiveness analysis. In CBA, benefits and costs are expressed in monetary terms, and are adjusted for the time value of money, so that all flows of benefits and flows of project costs over time are expressed on a common basis in terms of their "net present value."
Find a translation for the cost-benefit analysis definition in other languages:
Select another language:
Discuss these cost-benefit analysis definitions with the community:
Use the citation below to add this definition to your bibliography:
"cost-benefit analysis." Definitions.net. STANDS4 LLC, 2014. Web. 29 Jul 2014. <http://www.definitions.net/definition/cost-benefit analysis>.