What is it?
Cost benefit analysis
is a technique for comparing the costs of taking a particular course
of action with the benefits achievable from the outcome. It is a method
of assessing the viability of the course of action in monetary terms.
When to use it
When selecting the best course of action to take.
What does it achieve?
In solving the problem,
it is necessary to consider the effects of the solution. It is of little
benefit if the costs of the planned action far outweigh the benefits
- Determine the
period of analysis
- Determine factors
- Value the factors
- Analyse and
evaluate the information