cost-benefit analysis
Weighing pros cons
Cost-benefit analysis is a method of evaluating decisions by comparing the expected costs against the expected benefits, usually in monetary terms.
Businesses use it to assess investments, governments to evaluate policies and regulations.
The approach assumes all factors can be quantified and weighed, which critics note may undervalue things like environmental protection or human life: The cost-benefit analysis showed the bridge would pay for itself in twelve years.
- opportunity costSacrificed alternative's worth
- ROIProfit-to-cost ratio
- trade-offsSacrifices for gains
- pros and consFavorable and unfavorable points
- optimizationMaximizing efficiency or performance
hard choices · externalities · NPV · efficiency · bang for buck · IRR · bottom line · resource allocation · number crunching · evaluation · value · risk assessment · decision trees · breakeven point · judgment · spreadsheet · due diligence · resources
- problem-solvingproblem solving, puzzles, riddles, logic, solutions
- analysisanalyze, evaluate, examine, assess, interpret
- business termsfranchising, revenue stream, board meeting, gross margin, markdown
- Decision-Makingchoice, poor judgment, sound judgment, informed decision, hasty decision
- judgmentgood judgment, sound judgment, discernment, prudence, judiciousness
- cost analysiscost assessment, cost basis, cost savings, direct cost, variable cost
cost-benefit analysisgut instinct
Immediate unreasoned knowing
intuition · gut feeling · snap judgment · impulse · whim
cost-benefit analysisfaith
Trust without proof
blind faith · dogma · categorical imperative · wisdom · tradition
benefit, costs, analysis, costly, analyst, beneficial, beneficiary, analyzing, analyse