ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Cost-benefit analysis provides a measure of the profitability of education as an investment for society, or for the individual student or hisher family. It will act as a general guide for resource allocation and enable the comparison of the profitability of different types of education.

Detailed explanation-2: -Heads of higher educational institutions seek to optimize costs and increase the effectiveness of the educational institution. In this regard, they need to know how resources are allocated and used by type of activity. Due to its simplicity, direct costing methods are used.

Detailed explanation-3: -The unit cost per student is the average cost per student is calculated from the total expenditure divided by all students in higher education within a certain time. By knowing the size of the unit cost per student is useful to assess various policy alternatives in an effort to improve the education quality.

Detailed explanation-4: -A cost-benefit analysis is the process of comparing the projected or estimated costs and benefits (or opportunities) associated with a project decision to determine whether it makes sense from a business perspective.