method of representing factors which must be considered when making financial decisions
Cost-benefit analysis is a term that refers both to:a formal discipline used to help appraise, or assess, the case for a
project or proposal, which itself is a process known as
project appraisal; andan informal approach to making decisions of any kind. Under both definitions the process involves, whether explicitly or implicitly, weighing the total expected costs against the total expected benefits of one or more actions in order to choose the best or most profitable option. The formal process is often referred to as CBA, or Cost-Benefit analysis in the United States.
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