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Welcome
PRESENTATION
ON
COST BENEFIT ANALYSISITS IMPORTANCE
By
Stinu kj
msw
DEFINITION
FOUNDER :FRENCH ECONOMIST JULES DUPUIT
COSTAND BENEFIT
COST
Any negative effective on an
organisation resulting from the
implementation of the project.
EXMPLES
1. Maintaining cost
2. Environment
3. Research and development
4. Labour costs
BENEFIT
A benefit is any positive effect on
the organization resulting from
the implementation of the
project.
EXMPLES
1. Increase productivity
2. Reduction in costs
3. Saving time
CBA is a quantitative analytical tool to aid decision-makers in the
efficient allocation of resources. it identifies and attempts to quantify
the costs and benefits of a programme or activity and converts available
data into manageable information.
COST-BENEFI T ANALYSIS (CBA) is a tool used to determine the worth of
a project, programme or policy. it is used to assist in making judgments
and appraising available options.
The strength of the method is that it provides a framework for analysing
data in a logical and consistent way
ADVANTAGES OF CBA
ASA BUSINESSORGANISATION
CBA HELPSTO AUTHORITYTO ANSWER QUESTIONSSUCH AS:
WHY UNDERTAKE A COST-BENEFIT ANALYSIS?
IMPORTANCEOF CBA ANALYSIS
WHENIS A COST-BENEFITANALYSISUSED?
Analysing
capital
expenditure
Analysing a
policy option
Using or
disposing of an
existing asset
Post evaluation
of a project or
programme
Quantification
issues
Thank you

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Cost Benefit Analysis(CBA)