Today, we are going to discuss the Cost-Benefit Analysis, which is also known as Benefit-Cost Analysis. Cost benefit analysis in itself is a vast subject; however, in this blog post I’ll try to give you a general idea about the process.

I hope that once you go through it, you’ll have a basic understanding about this benefit measurement method.

Usually, these kinds of analyses are performed by high level stakeholders; e.g. top management, or an organization’s board members.

They sit together and analyze which project is more profitable to them and aligned with the organization’s objective, and then pick the best project.