Cost Benefit Analysis Notes: Definitions & Explanations PDF | Download eBooks

Study Cost Benefit Analysis lecture notes PDF with total quality management definitions and explanation to study What is Cost Benefit Analysis?. Study cost benefit analysis explanation with TQM terms to review total quality management course for online MBA programs.

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. One of them is cost-benefit analysis. Cost benefit analysis is an approach which helps in identifying the strengths and weaknesses associated with the project alternatives. The analysis aid in selecting the best alternative that provides the most benefit while reducing costs. Cost-benefit analysis enable to identify the types of costs associated with the projects. The trade-off between the cost and benefit is established. There are two types of costs, hard and soft costs. Hard costs are the cost that are directly related to the project and the reduction in hard costs reduces the overall project cost. On the other hand, soft costs are indirect costs which may not be recovered through project savings.

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