Vision and CBA

Vision: Blurred

Cost Benefit Analysis:
CBA is like preparing a Balance Sheet where one side is Cost Incurred and other side is Benefits Derived. Effort is put in to come to a point where they weigh equal. And as soon as this happens, a decision is taken. And the tools used to come to such a satisfying point are: Preliminary Survey and Feasibility Study.

Critical View: We all do CBA daily in our lives, doesn’t matter how much larger or smaller the scale may be.
Specifically, in a company, CBA is an essential tool to save costs, time and energy as it can be applied in any department at any level. On the negative side, it doesn’t quantify intangible features. So some items on the balance sheet may always remain hidden and unanswerable.

NOTE: If anybody has heard of the term Due Diligence, then understanding CBA will not be difficult. In simple terms, DD is an investigation of an potential investment.