Cost benefit analysis

Cost benefit analysis involves the consistent valuation of costs and benefits in monetary terms for both monetary and non-monetary variables (economic, social and environmental) across time. It is most usefully applied when the major benefits of a program can be reasonably quantified and monetised. Cost benefit analysis often involves calculation of a benefit cost ratio. A benefit cost ratio of 1.5 means that, for every $1 invested in the program, $1.50 worth of benefit is produced.

Back to Glossary

Return to top of page Back to top