This paper concentrates on the primary theme of Cost Benefit analysis- the advantages/disadvantages of using it in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.
Cost Benefit analysis- the advantages/disadvantages of using it
I need a one page paper for the following topic “Cost/Benefit Analysis- the advantages/disadvantages of using it”. I have provided some articles for you to use as reference. You do not need to reference all of the articles. Use as many references citations you need to write the paper. Please only reference the articles that I have provided.
Cost Benefit analysis
Cost Benefit analysis
Cost Benefit Analysis (CBA) as Dealia & Gabriela (ND) notes is a business-planning tool that is often used by business in evaluating the business project they should pursue. The underlying principle is that businesses need to create enough of revenue that will cover their costs or else they will reduce their level of profitability. CBA often analyses projects and their respective costs to find those that offer the highest benefits or profitability.
Advantages of Cost Benefit Analysis
According to Kraus & Raso (2013), CBA are often preferred due to their simplicity since they provide a clear analysis that explains whether the benefits that accrues from a project measures up to the costs and its respective investment. Another closely related advantage is their high propensity to objectivity since they allow the manager to choose projects not based on their attachment to the projects, but based on the financial investments they have made. Such a high level in objectivity minimizes instance of bias whenever deciding on the projects to pursue since an individual relies on figures (Coates & John, 2014). SEC as Coates and John comments in the US has always sought to develop policy to improve on the objectivity of choosing projects based on the CBA principles.
Disadvantages of Cost Benefit Analysis
Despite having these advantages, CBA has its own demerits, which arise from the high level of estimations that is applied by the method. In essence, making estimation influences one’s ability to make accurate which could influence them to making the wrong decisions since projects rely on the ability to consider all the variables and their respective financial implications. Estimation Schipper (2010) notes influences the cost of active and the passive