Cost benefit analysis finds, quantifies, and adds all the positive factors. These are the benefits. Then it identifies, quantifies, and subtracts all the negatives, the costs. The difference between the two indicates whether the planned action is advisable. Inorder to do a cost benefit analysis well is making sure you include all the costs and all the benefits and properly quantify them.
Example of cost benefit analysis
A company that will like to buy business intelligent software to improve its business can use cba to make its mind:-
Cost side would be:
· Price of software
· Cost of consultant to install and implement software
· Cost of training for the software
Benefits are-
· Improved business process
· Better information better decision
· Increased staff moral due to the modern tools to support the business
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