What are common mistakes in cost-benefit analysis?

What are common mistakes in cost-benefit analysis?

Some common mistakes include overlooking indirect costs, failing to consider opportunity costs, and using inaccurate data.

Can you explain why overlooking indirect costs is a mistake?

Overlooking indirect costs can lead to an inflated perception of benefits, resulting in poor decision-making.

What about opportunity costs?

Ignoring opportunity costs means not accounting for the benefits you miss out on when choosing one option over another.

How can I avoid these mistakes?

To avoid these mistakes, ensure thorough data collection, consider all potential costs, and regularly review your analysis.