What is the difference between cost-benefit analysis and other methods?

What is the difference between cost-benefit analysis and other methods?

Cost-benefit analysis (CBA) evaluates the total expected costs against the benefits of a project, while other methods like SWOT analysis focus on strengths, weaknesses, opportunities, and threats.

Can you give me an example of when to use CBA?

Sure! CBA is often used in public policy decisions, like evaluating the economic impact of a new highway.

What are some limitations of cost-benefit analysis?

Some limitations include difficulty in quantifying intangible benefits, potential bias in cost estimates, and the challenge of predicting future outcomes.

How does CBA compare to qualitative methods?

CBA is quantitative and focuses on numerical data, while qualitative methods assess subjective factors, providing a more holistic view.

Are there situations where CBA is not recommended?

Yes, CBA may not be suitable for projects with significant uncertainty or where social and environmental impacts are hard to quantify.