UK Accounting Glossary
Cost/benefit analysis is a process of quantifying the most economically feasible outcome by weighing potential costs against potential benefits. Cost/benefit analysis is a risk management technique. Implementing cost/benefit analysis may help recognize certain risks and rewards, and thus help determine the right course of action with respect to given business undertaking. Cost/benefit analysis is an examination that can be applied to virtually any business endeavour. Stock trades, real estate deals, and business projects may all require a thorough cost/benefit analysis. An example of cost/benefit analysis would be a decision concerning an investment in a volatile but bullish stock. Large corporations and governments also perform cost/benefit analysis to streamline macroeconomic decisions related to budgeting, capital goods, monetary policy, and capacity utilization. In a professional setting cost/benefit analysis is usually conducted by business analysts or financial advisers.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Cost/Benefit Analysis are sourced/syndicated and enhanced from:
This glossary post was last updated: 4th February 2020.