COST BENEFIT ANALYSIS

on the basis of my understanding a cost benefit analysis tells how well or how effectively will the planned action turn out. it generally adds on all the positive factors and subtracts all the negative factors to get the final result.
cost-benefit analysis is carried out using only financial costs and financial benefits.
For example, a simple cost benefit ratio for a road scheme would measure the cost of building the road, and subtract this from the economic benefit of improving transport links. It would not measure either the cost of environmental damage or the benefit of quicker and easier travel to work.

This analysis is even done by us on our daily basis for eg: while coming from sec. 37 to college one should take an auto or should take amity bus in order to reach the college .here the cost will be Rs30 to 40 of an auto and the benefit is traveling comfortably than by a bus where plus side is one can save the expenses and minus side is rarely you get a seat to sit and stand in a crowded bus.