cost analysis, Microeconomics

What is cost analysis? Cost–benefit analysis known as CBA, sometimes known as benefit–cost analysis BCA, is a systematic process of calculating & comparing profit and costs of a project, decision or government policy (hereafter, "project"). CBA has two purposes:

To decide if it is a sound investment-decision (justification-feasibility),

To offer a basis for comparing projects. It mainly 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.

Posted Date: 8/7/2012 7:42:30 AM | Location : United States

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