Cost-Benefit Analysis in Accounting

Cost-Benefit Analysis (CBA) in accounting is a systematic process to compare the costs and benefits of a project, investment, or decision. It involves identifying all relevant expenses and potential gains, quantifying them in monetary terms, and then comparing the two. The goal is to determine whether the benefits outweigh the costs, helping decision-makers choose options that maximize value or efficiency. CBA provides a structured way to evaluate the economic impact of decisions, ensuring resources are allocated in the most effective manner for maximum returns.