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Which best describes the purpose of using cost-benefit analysis?

produce a spreadsheet predicting costs
make decisions that maximize benefits
decide how much money to invest to earn a certain amount
know the highest and lowest price to pay for something

User Gilbert V
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2 Answers

7 votes

Answer: A process of maximizing benefits and minimizing costs

Step-by-step explanation:

Answer

User Bud
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4 votes

Answer:

Make decisions that maximize benefits

Step-by-step explanation:

The whole purpose of a cost-benefit analysis is to allow management to make the best decisions using the measurment of profitability in a specific project or system. The model calculates all the income and benefits as well as all the associated costs, substracting the costs from the benefits. This is how you can determine the opportunity cost for each project or system.

User Robert Ramey
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