Cost-Benefit Analysis is an analyzing tool to form decisions. It is divided into positive
beneficial activities and negative costly consequences.
It is nothing but an economic evaluation in which economic and non-economic costs, as well as benefits, are evaluated.
Google is a wonderful example that makes the best cost-benefit analysis.
There are different types of costs including direct cost, indirect cost, opportunity cost, and
intangible cost.
The benefits are increased production, employee safety, team unity, expansion in sales, increased customer goodwill, etc.
The concept is quite simple. If you have to buy digital software to increase sales, you have to evaluate the benefits of the software over its cost. If the cost is low and the benefit is high, you can purchase it without hesitation.
However, a lack of a framework can make losses for the company. Therefore, the framework is very important to bring better financial stability of the business.
See You in the Next Blog, Bye
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