When should I use cost-benefit analysis?

When should I use cost-benefit analysis?

Cost-benefit analysis is useful when you need to evaluate the financial implications of a decision or project.

Can you give me an example of a situation where it would be applicable?

Sure! It's often used in project management to assess whether the benefits of a project outweigh its costs.

What are the key components I should consider in a cost-benefit analysis?

You should consider direct costs, indirect costs, potential benefits, and the time frame for analysis.

Are there any limitations to using cost-benefit analysis?

Yes, it can oversimplify complex decisions and may not capture non-monetary benefits or costs.