Cost Benefit Analysis Notes: Definitions & Explanations PDF | Download eBooks
Study Cost Benefit Analysis lecture notes PDF with project management definitions and explanation to study What is Cost Benefit Analysis?. Study cost benefit analysis explanation with project management terms to review project management course for online MBA programs.
Cost Benefit Analysis Definition:
A cost-benefit analysis is a financial analysis tool used to estimate the strengths and weaknesses of alternatives in order to determine the best alternative in terms of benefits provided.
A Guide to the Project Management Body of Knowledge by Project Management Institute
Cost Benefit Analysis Notes:
In management, selecting and qualifying projects is important. It means to determine the worth of a project. Several methods are used for qualifying projects or any aspect of them. One of them is cost-benefit analysis. Cost benefit analysis is an approach which helps in identifying the strengths and weaknesses associated with different alternatives. The best among the alternatives is selected which gives the most benefit with reduced cost. To check if the quality activities are cost effective, cost-benefit analysis is used. The cost of the quality activity is compared with the benefit it provides in order to decide if the activity should be continued or not. The benefits expected of the quality activities include less rework, high productivity, increased customer satisfaction and high profitability etc.
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