Question

What is comparing the cost of a business plan to the monetary value of the benefit derived from the same plan known as?

Answer 1

Available options are:

A. Cost-benefit analysis

B. Payback period analysis

C. Net present value analysis

D. Time series analysis

E. Marginal cost analysis

Answer:

Option A. Cost-benefit analysis

Step-by-step explanation:

The reason is that business plan includes the financial aspect of the project and whose acceptance or rejection is dependent upon the profitability of the project. As we know that:

Profit = Benefits generated - Cost incurred

This means the cost and the benefit generated that are valued in dollars are the main elements that helps to calculate the profitability of the projects. Furthermore, these two elements cost and benefits, helps to assess the project should either be accepted or rejected and is part of cost-benefit analysis.

Answer 2

The COST BENEFITS ANALYSIS will be used to do the comparison

Step-by-step explanation:

Business plan has to with a set of well-written business documents that detailed how the modules in which a business is to be carried out stating the aims and how to achieve the set aims while monetary value has to do with the gains derived from a set of a business plan.

In comparing the two, we look at the cost that was incurred in the process of writing the set business plan and the gains that were made in the process of executing the plans. This has to do with Cost benefits analysis which means checking if the cost of a business plan is not more than the benefits.