cost-benefit analysis

cost-benefit analysis
In governmental planning and budgeting, the attempt to measure the social benefits of a proposed project in monetary terms and compare them with its costs.

The procedure was first proposed in 1844 by Arsène-Jules-Étienne-Juvénal Dupuit (1804–66). It was not seriously applied until the 1936 U.S. Flood Control Act, which required that the benefits of flood-control projects exceed their costs. A cost-benefit ratio is determined by dividing the projected benefits of a program by the projected costs. A wide range of variables, including nonquantitative ones such as quality of life, are often considered because the value of the benefits may be indirect or projected far into the future.

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Universalium. 2010.

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  • cost-benefit analysis — noun an analysis of the cost effectiveness of different alternatives in order to see whether the benefits outweigh the costs • Hypernyms: ↑analysis, ↑analytic thinking * * * cost benefit analysis ● cost * * * cost benefit analysis UK US noun… …   Useful english dictionary

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  • cost-benefit analysis — UK / US noun [countable] Word forms cost benefit analysis : singular cost benefit analysis plural cost benefit analyses business a comparison of the likely costs of a plan or project with the benefit it will bring, done in order to help make a… …   English dictionary

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