6. 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
7. 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