Is a simple way of describing costbenefit analysis?

Answer 1

The relationship between the cost of a project, and the expected economic benefit of the project. Probably the most often conscious and unconscious undertaking in business and government.

Inherently, the lesser the economic benefit, or even a "negative" benefit, as in environmental alternative energy projects, require "offsets" in the form of tax benefits, subsidies, or "mandated buy" provisions by government.

When "soft" benefits are analyzed in a project, like worker satisfaction in Cloud Commuting, some projects take a new, positive light.

In the end, however, non "social" projects, business undertakings primarily, must be considered as stand alone projects, and cost/benefit analysis is always a helpful starting point, if only to place perspective on an idea.

In the end, an undertaking may be justified on grounds other than strict cost/benefit analysis.

Hope this helps,

Barry

Answer 2

Making a decision by listing pros and cons.