Cost-benefit analysis (CBA) is a systematic approach to evaluate proposed projects or decisions. It assesses both the potential costs and benefits in monetary terms to allow for an objective comparison. The fundamental premise of CBA is to quantify the positive and negative consequences of a project to determine if its benefits outweigh its costs. It provides decision-makers a framework to prioritize projects that offer the greatest net positive impact and is used in fields like business, government, and non-profits.

1. COST-BENEFIT ANALYSIS
PRESENTED BY
ASWATHI J LENIN

2. Introduction
Analysis in project planning means carefully looking at all the
important parts of a project to understand them better. It's
like taking a closer look at what you're planning to do, figuring
out what might help or hinder it, and making smart decisions
based on that understanding. Different types of analysis help
you see things from different angles, like checking what your
project is good at (SWOT analysis), looking at the big picture
around it (PESTLE analysis), or figuring out what could go
wrong (risk analysis). Overall, it's about being smart and well-
prepared before you start your project.

3. COST-BENEFIT ANALYSIS
Cost-Benefit Analysis (CBA) is a systematic and quantitative
approach used to assess the desirability of a proposed project
or decision by evaluating its potential costs and benefits. This
analytical method provides a structured framework for decision-
makers in various fields, including business, government, and
nonprofit sectors, to make informed choices based on economic
considerations.
The fundamental premise of CBA is to weigh the positive and
negative consequences of a project in monetary terms, allowing
for a comprehensive comparison. By assigning a monetary value
to both costs and benefits, CBA facilitates a more objective and
standardized evaluation, enabling decision-makers to prioritize
projects that offer the greatest net positive impact.

4. CBA assess decisions or choices. It is a decision-making tool
designed to provide information and helps decision makers
when they face difficulty in allocating scarce resources.
CBA focuses on efficiency and analyzes whether the
implementation of a particular policy increases social
welfare.
CBA is not the analysis of public expenditures and revenues
for a public policy; instead it is used to assess the social
value effects of public or private decisions and attempts to
allow for all gains and losses as viewed from the standpoint
of all individuals within society. Such gains and losses are
known as social benefits and costs.

5. FOUNDATION PRINCIPLE OF COST-BENEFIT ANALYSIS
EXPLICT VALUATION
Explicit valuation typically
refers to a clear and specific
assessment or
determination of the value of
something, often in financial
terms. It can apply to
various contexts, such as
business assets, real
estate, or investments.
CONQUENTIAL
VALUATION
Consequential evaluation
involves assessing the
outcomes or consequences of a
decision, action, or project. It
focuses on understanding the
effects and impacts, both
intended and unintended, that
result from a particular course
of action. This type of
evaluation is often used to
analyze the long-term effects
and broader implications of
decisions or initiatives.
ADDITIVE
ACCOUNTING
project management, additive
accounting could be applied
when estimating the total cost
of a project by adding up
individual cost estimates for
labor, materials, and other
resources. This method
provides a straightforward way
to quantify and analyze the
overall impact of various
components in a systematic
manner

6. PURPOSE OR NEED
Decision Making
Resourse allocation
Project Justification
Risk assessment
Long term planning
Public policy evaluation
Environmental Impact
Efficiency improvement

7. PROCESS
Identify project and scope
Determine cost
Determine benefit
Estimate and analyse cost and
benefit
Make recommendation and
implemetation

8. LIMITATION
Cost-Benefit Analysis (CBA) has some
downsides. It can be tricky to put a value on
things we can't touch, and sometimes we
don't have all the right information. Plus,
predicting the future is tough. CBA assumes
everyone makes choices in a straightforward
way, and it might not consider if one group
gets more benefits than another. Also, it can
miss out on important stuff, like how people
feel about a decision. So, while CBA is
helpful, it's not perfect, and we need to be
aware of its limitations.

9. CONCLUSION
Cost-Benefit Analysis (CBA)* is a systematic approach to
evaluating the economic feasibility of a decision or project by
comparing the total expected costs against the total expected
benefits. The goal is to determine whether the benefits outweigh
the costs and whether the investment or decision is
economically justified. CBA involves quantifying both the positive
and negative aspects of a decision in monetary terms, providing
a framework for decision-makers to assess and compare
different options in a transparent and rational manner. It is
widely used in various fields, including business, public policy,
and project management, to aid in making informed choices that
maximize overall value.

10. THANK
You