Cost Analysis

Cost analysis is a financial process that helps individuals or organizations understand the costs associated with a project or decision. It involves identifying and evaluating all the expenses involved, such as materials, labor, and overhead, to determine whether an investment is worthwhile. By comparing costs to potential benefits or revenues, stakeholders can make informed choices about budgeting, pricing, and resource allocation. Essentially, cost analysis helps to ensure that money is spent wisely and that the expected returns justify the expenses incurred.