Cost-benefit analysis

Definition of Cost-benefit analysis

A Cost-benefit analysis (CBA) also known as benefit-cost-analysis (BCA) is a systematic process of estimating the strengths and weaknesses of business decisions. It is a way of implementing the practice to settle on the alternative that is responsible for the adoption and practice in the subject of benefits in labor, cost saving, time, etc.

Books on Cost-benefit analysis

Book 1 –

Cost-Benefit Analysis Edited by Richard Layard, Stephen Glaister (published by Cambridge University Press, 1994)

Book 2 –

Cost-benefit Analysis for Public Sector Decision Makers By Diana Fuguitt, Shanton J. Wilcox (published by Greenwood Publishing Group, 1999)

How Cost-benefit analysis works?

For example, a sales director is evaluating whether to initiate a new computer-based contact management sales processing system. There are only few computers in his department, and his people have no knowledge in computer. But he knows that the computer will give him more contacts to consumers and a higher quality of reliability and services.

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