Lesson
10

Cost-Benefit Analysis

Success Problem

How is it possible to analyze successful the economic effects of the planned project especially in the public sector where no markets exist to provide this information "authomatically"? In the private sector this problem exists also, especially if there are grounds to mistrust the signals provided by market prices: for example in the case of competitions were the inputs are underpriced or outputs are overpriced.

Impact

The resources of any organization are limited. Therefore it is very useful to analyze carefully the alocation of the organizational resources to the planned projects especially.

Recommendation

Cost-benefit analysis is a method for organising information to aid decisions about hte allocation of resources. Costs and benefits are expressed in money terms and are directly comparable with one another.

Category

0 Comments

Forgot Password?

Don’t have account? Register here!

Please read the Terms of Use and Privacy Notice

User Agreement:
Check here to indicate that you have

We have sent an email with a confirmation link to your email address. In order to complete the registration, please click the confirmation link.

The link expires within the next 14 days.

Please check, whether the email is in the junk folder, since confirmation mails with backlinks are sometimes classified as spam.

Please press the button.
Save All Changes.