cost-benefit analysis

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Cost-benefit analysis

A method of evaluating projects or investments by comparing the present value or annual value of expected benefits to costs; the practical embodiment of discounted cash flow analysis; a useful technique for making transparent the benefits of upfront investments in sustainable design features or technologies.

cost-benefit analysis

a technique for appraising the total economic costs and benefits (and ideally the total social costs and benefits expressed as economic costs) arising from any economic and social activity, especially new projects. Hitherto, the technique has been mainly used to appraise new, large, public projects. But, in an increasingly ecologically conscious era, the proposal now is that many more existing economic and social activities should be subject to full cost-benefit analysis, with many more costs, e.g. environmental, also included to a fuller extent than previously Cost-benefit analysis is far from being a straightforward technique, however, and much depends on the assumptions on which a costing is made. Careful attention has always to be given to the range of external costs and the range of benefits to be included in the calculations, as well as to the basis on which these can be costed. The results usually leave scope for controversy.

cost-benefit analysis

An analysis of a construction contract with the objective of identifying all the included costs and evaluating their benefits.
References in periodicals archive ?
The complexity surrounding large commercial risks has historically meant that it's easier to build your own, and a lot of insurers coming to us now in this line of business are saying, "It's come to the natural end of its lifecycle, should we build versus buy," because they've never considered buying off the shelf and there are a number of solutions coming out of the London market capable of doing that.
The Etude Programme is a collaborative programme which aims to deliver a significantly different offering to the financial services sector which is currently faced with the build versus buy dilemma.
However, as with any build versus buy strategy, the art is not in simply acquiring the product but in combining the technology into a cohesive integrated offering.
Build, Buy or Both: Nearly half of the companies surveyed plan to both build and purchase mobile apps as part of their procurement strategy, with the remaining half split between build versus buy.
With an expanded conference program spotlighting the market's hottest topics, E2 Conference will give audiences the chance to learn the latest strategies with new workshops like a full-day Mobile Connect Workshop covering BYOD, the build versus buy dilemma and setting a mobile strategy.