COST BENEFIT Meaning and
Definition
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Cost benefit refers to the analysis and evaluation of the potential positive and negative outcomes or consequences associated with a decision, project, or course of action, in relation to the financial or resource investments required. It is an assessment method used to weigh the advantages or benefits against the costs or disadvantages in order to ascertain if the decision or action is worth pursuing.
In cost benefit analysis, the expected benefits from a particular decision or action are measured in monetary terms and compared with the costs involved in implementing it. These costs may include financial expenses, such as production costs, salaries, and maintenance expenses, as well as non-financial costs like time and effort. The benefits, on the other hand, may include financial gains, such as revenue or increased profits, and non-financial gains like improved quality of life or enhanced societal welfare.
By comparing the potential benefits and costs, decision-makers can determine if the benefits outweigh the costs, signifying a positive outcome, or if the costs outweigh the benefits, indicating a negative outcome. This analysis aids in making rational and informed decisions, allowing individuals, organizations, or governments to allocate resources efficiently. It enables prioritization and helps identify the most effective and efficient options available by quantifying and comparing the expected returns from competing alternatives.
Cost benefit analysis is widely employed in various fields, including economics, business, finance, public policy, and project management, to evaluate the profitability, viability, feasibility, and desirability of a particular course of action.
Common Misspellings for COST BENEFIT
- xost benefit
- vost benefit
- fost benefit
- dost benefit
- cist benefit
- ckst benefit
- clst benefit
- cpst benefit
- c0st benefit
- c9st benefit
- coat benefit
- cozt benefit
- coxt benefit
- codt benefit
- coet benefit
- cowt benefit
- cosr benefit
- cosf benefit
- cosg benefit
- cosy benefit
- costbenefit
Etymology of COST BENEFIT
The word "cost" came from the Latin word "costare" meaning "to stand at", which later evolved to mean "to cost" in the late 14th century, referring to the price one needs to pay for something. On the other hand, the word "benefit" originated from the Latin word "benefactum" which means "a good deed" or "favor", and later transformed into "beneficium" meaning "good deed, kindness, or benefit" in the Late Latin.
The combination of "cost" and "benefit" to form the phrase "cost benefit" originates from the field of economics. The concept of cost-benefit analysis, determining whether the benefits of a particular decision outweigh its costs, was developed and popularized in the early 20th century.
Similar spelling words for COST BENEFIT
- benefit-cost ratio,
- cost-benefot analysis,
- benefit cost,
- cost-of-living benefit,
- benefit-cost analysis,
- cost-benefit study,
- cost-benefit analysis,
- cost/benefit analysis.
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