Thursday, September 17, 2009

Cost Benefit Analysis- critical review!

CBA is a way through which one can judge the feasibility of an oppurtunity in hand ! one can figure out what are the plus & minus points of the idea or the oppurtunity that one wants to take up! to analyse each bit of it through analysing various aspects of cost through the CBA.
But not always this leads to zeroing in the best deal ! We cannot measure every successful deal to be the cheapest in monetary terms! All the firms look forward to increase or maximise their productivity in minimum costs, we all know that, but then this might not hold true for all the cases. at times by lowering costs quality suffers and this might be overlooked by CBA , which goes anti that particualr business.
CBA is concerned with which oppurtunity would give the maximum returns with the min cost involved! It surely facilitates a business decision making process , analysing the costs and the benefits.

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