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Cost-Benefit Analysis

Cost-Benefit Analysis. CBA. What is Cost Benefit Analysis?. CBA is an analytical framework used to assess the benefits and costs of policy proposals CBA focuses on economic efficiency It calculates the net benefits for each policy proposal

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Cost-Benefit Analysis

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  1. Cost-Benefit Analysis CBA

  2. What is Cost Benefit Analysis? • CBA is an analytical framework used to assess the benefits and costs of policy proposals • CBA focuses on economic efficiency • It calculates the net benefits for each policy proposal • Takes a long-term view and incorporates all relevant costs and benefits

  3. Advantages of CBA • Takes a community-wide perspective • Allows the consideration of a range of policy options • Determines which policy maximises net benefits to the community • Allows benefits and costs to be compared over time • Can showthe costs and benefits accruing to different groups within the community

  4. Example • Student problem - Assignment printing for 1 semester • Based on the table, students can save about RM 168 for one semester. Plus, the printer can be used more than 1 semester. It is a long- term use so the students can save more money for the upcoming semester.

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