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What are the uses of Cost Benefit Analysis?
Generally, this technique (complex cost benefit analysis) is advocated for use within decisions on public projects, wherein social costs and benefits, and also, actual out-of-pocket costs must be taken in account. What counts like a benefit or loss to one part of economy, to one or more people or groups-does not necessarily count as a benefit or loss to the economy as a whole? And in cost-benefit analysis we are thought with the economy as an entire, along with the welfare of an explained society and not any smaller part of this. But cost-benefit analysis may also be appropriate to a single company, for in various cases, this is advisable to place a value onto costs and benefits which are not ordinarily expressed into rupees.
Somewhat like to cost-benefit analysis is the cost effectiveness analysis that is an analysis to find out the least expensive way of reaching a goal or of acquiring the greatest possible value by a specified expenditure.
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