Cost-benefit analysis is
A) a set of practical procedures for guiding public expenditure decisions.
B) used by the private sector to determine whether certain projects should be undertaken.
C) difficult when benefits and costs are hard to evaluate.
D) mindful of changes over time.
E) all of these answer options are correct.

Question

Quizplus · Accepted Answer

Cost-benefit analysis is a practical approach that can be used by both the public and private sectors to assess the financial feasibility of different projects. It can be challenging when trying to evaluate intangible benefits or costs that are not easy to quantify, but it remains mindful of changes over time, including inflation and changes in project scope or objectives. Therefore, option E correctly identifies all of these benefits of cost-benefit analysis.

Cost-Benefit Analysis Is