What does cost-benefit analysis mean?

Definitions for cost-benefit analysis
cost-ben·e·fit ana·ly·sis

This dictionary definitions page includes all the possible meanings, example usage and translations of the word cost-benefit analysis.

Princeton's WordNet

  1. cost-benefit analysisnoun

    an analysis of the cost effectiveness of different alternatives in order to see whether the benefits outweigh the costs

Wiktionary

  1. cost-benefit analysisnoun

    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.

  2. cost-benefit analysisnoun

    Any comparison of costs and benefits.

Wikipedia

  1. cost-benefit analysis

    Cost–benefit analysis (CBA), sometimes also called benefit–cost analysis, is a systematic approach to estimating the strengths and weaknesses of alternatives. It is used to determine options which provide the best approach to achieving benefits while preserving savings in, for example, transactions, activities, and functional business requirements. A CBA may 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 commonly used to evaluate business or policy decisions (particularly public policy), commercial transactions, and project investments. For example, the U.S. Securities and Exchange Commission must conduct cost-benefit analyses before instituting regulations or deregulations.: 6  CBA has two main applications: To determine if an investment (or decision) is sound, ascertaining if – and by how much – its benefits outweigh its costs. To provide a basis for comparing investments (or decisions), comparing the total expected cost of each option with its total expected benefits.CBA is related to cost-effectiveness analysis. Benefits and costs in CBA are expressed in monetary terms and are adjusted for the time value of money; all flows of benefits and costs over time are expressed on a common basis in terms of their net present value, regardless of whether they are incurred at different times. Other related techniques include cost–utility analysis, risk–benefit analysis, economic impact analysis, fiscal impact analysis, and social return on investment (SROI) analysis. Cost–benefit analysis is often used by organizations to appraise the desirability of a given policy. It is an analysis of the expected balance of benefits and costs, including an account of any alternatives and the status quo. CBA helps predict whether the benefits of a policy outweigh its costs (and by how much), relative to other alternatives. This allows the ranking of alternative policies in terms of a cost–benefit ratio. Generally, accurate cost–benefit analysis identifies choices which increase welfare from a utilitarian perspective. Assuming an accurate CBA, changing the status quo by implementing the alternative with the lowest cost–benefit ratio can improve Pareto efficiency. Although CBA can offer an informed estimate of the best alternative, a perfect appraisal of all present and future costs and benefits is difficult; perfection, in economic efficiency and social welfare, is not guaranteed.The value of a cost–benefit analysis depends on the accuracy of the individual cost and benefit estimates. Comparative studies indicate that such estimates are often flawed, preventing improvements in Pareto and Kaldor–Hicks efficiency. Interest groups may attempt to include (or exclude) significant costs in an analysis to influence its outcome.

ChatGPT

  1. cost-benefit analysis

    A cost-benefit analysis is a systematic approach used in decision making to understand the strengths and weaknesses of alternative options that could fulfill a business objective or project. It involves assessing the potential positive outcomes (benefits) and the potential negative outcomes (costs) associated with a decision, typically measured in terms of monetary value. The goal is to determine which option provides the maximum net benefit or minimum net cost.

U.S. National Library of Medicine

  1. Cost-Benefit Analysis

    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.

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Numerology

  1. Chaldean Numerology

    The numerical value of cost-benefit analysis in Chaldean Numerology is: 2

  2. Pythagorean Numerology

    The numerical value of cost-benefit analysis in Pythagorean Numerology is: 2

Examples of cost-benefit analysis in a Sentence

  1. Tina Joemat-Pettersson:

    We are committed to a thorough cost-benefit analysis and the cost-benefit analysis is part of the procurement process. We are not going to compromise our country in any way.

  2. Ellen Kurlansky:

    This action, which is a gift to the coal industry at the expense of all Americans, is an attack on public health justified by a phony cost-benefit analysis that purposely inflates the cost of MATS and ignores the value of the human health benefits.

  3. Edward Fishman:

    The point of maximum leverage is now, before Russian President Vladimir Putin has decided to attack Ukraine. If Russian troops are pouring across the border and the West imposes sanctions, the game is already over. We have lost. We don't want to get to that point. That's why it's so important for the sanctions threat to be both serious and credible now. It needs to alter Putin's cost-benefit analysis about invading Ukraine.

  4. Mary Hamman:

    Parents of all socioeconomic statuses do a bit of cost benefit analysis when they decide whether and how much to participate in well-baby care, if they must take a day or afternoon off work, negotiate complex transportation logistics, or miss out on time they could be spending attending to more pressing issues – like food, housing or utility insecurity – then they want to feel there is a clear benefit to doing so.

  5. Sam Aguiar:

    These prosecutors use a cost-benefit analysis and it's : do we go after a police officer for what is criminal conduct and really diligently pursue the case and get a conviction and take the risk of losing the support of our key witnesses on hundreds of other cases, or do we basically sack the case, when you bring in an independent body to come in and basically put all the resources into holding the officer accountable, that you're actually going to get a situation where a trial is put together that really does present all the evidence objectively.


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"cost-benefit analysis." Definitions.net. STANDS4 LLC, 2024. Web. 28 Feb. 2024. <https://www.definitions.net/definition/cost-benefit+analysis>.

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