ECONOMICS
COST BENEFIT ANALYSIS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
a list of all the employees you want to hire
|
|
|
a pros-cons list
|
|
|
a christmas wishlist
|
|
|
a list of all the projects you want to do
|
Detailed explanation-1: -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.
Detailed explanation-2: -A benefit-cost analysis (BCA) is a systematic process for identifying, quantifying, and comparing expected benefits and costs of an investment, action, or policy. Common uses of BCA at DOT include regulatory impact analysis and policy analysis, as well as infrastructure project evaluation.
Detailed explanation-3: -It is a technique that is used to appraise and evaluate projects. The basic idea in CBA is quite simple: first, identify the costs and benefits of a project and. then measure them incomparable units (say in terms of money, and expressed in a single currency).
Detailed explanation-4: -Disadvantages. Although it is a useful technique for decision making, it has some limitations. The accuracy of this analysis can be affected by inadequate information. If the costs and benefits are not clearly identified and their monetary values are not calculated correctly, the results may be misleading.
Detailed explanation-5: -Advantage: Clarity in Unpredictable Situations. Disadvantage: Does Not Account for All Variables. Advantage: Helps You Make Rational Decisions. Disadvantage: Removes Gut Instinct.