Short Note on Cost - Benefit Analysis

Cost - Benefit Analysis :-

Cost – benefit analysis is a tool for evaluating the effectiveness of the project. It may be used by the management to decide as to what extent benefits out weight the cost. The cost also created with the proposed business system are the expenses arising from developing, installing, training and imply maintaining the system. The benefits are the advantage gained, including money savings from implementing the proposed system.

There are types of costs and benefits are –

A . Tangible or Intangible.

B . Fixed or Variable.

C . Direct or Indirect.

Objectives :-

The primary objective of cost – benefits analysis is to find out whether it is economically worth while to invest in the proposed project. If the return on the investment is high, then the project is consider economically worthwhile.