COST BENEFIT ANALYSIS

Abstract

The cost benefit analysis helps in finding out the relationship of costs and revenues to output. It enables the financial manager to study the general effect of the level of output upon income and expenses and therefore upon profits. Cost-Benefit Analysis (CBA) estimates and totals up the equivalent money value of the benefits and costs to the community of projects to establish whether they are worthwhile. Cost-Benefit Analysis (CBA) measures a project's societal value by quantifying the project's societal effects and making costs and benefits comparable in monetary terms.