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    Cost Benefit Analysis

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    DJianne Sulangon-Guray
    This document discusses cost-benefit analysis and its types. Cost-benefit analysis is a tool that compares the costs and benefits of potential projects to choose those with the greatest net benefit. It considers economic choice and aims to assist decision makers. There are different types of costs and benefits, including private costs versus benefits, external costs versus benefits, and social costs versus benefits.

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    Cost Benefit Analysis

    Uploaded by

    DJianne Sulangon-Guray
    26 views6 pages
    This document discusses cost-benefit analysis and its types. Cost-benefit analysis is a tool that compares the costs and benefits of potential projects to choose those with the greatest net benefit. It considers economic choice and aims to assist decision makers. There are different types of costs and benefits, including private costs versus benefits, external costs versus benefits, and social costs versus benefits.

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    COST BENEFIT ANALYSIS.pptx

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    This document discusses cost-benefit analysis and its types. Cost-benefit analysis is a tool that compares the costs and benefits of potential projects to choose those with the greatest net benefit. It considers economic choice and aims to assist decision makers. There are different types of costs and benefits, including private costs versus benefits, external costs versus benefits, and social costs versus benefits.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    26 views6 pages

    Cost Benefit Analysis

    Uploaded by

    DJianne Sulangon-Guray
    This document discusses cost-benefit analysis and its types. Cost-benefit analysis is a tool that compares the costs and benefits of potential projects to choose those with the greatest net benefit. It considers economic choice and aims to assist decision makers. There are different types of costs and benefits, including private costs versus benefits, external costs versus benefits, and social costs versus benefits.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    COST-BENEFIT ANALYSIS

    AND ITS TYPE


    COST-BENEFIT ANALYSIS

    IS CONCERNED WITH ECONOMIC CHOICE AND ENDEAVORS


    TO ASSISTS DECISION MAKERS IN MAKING CHOICES
    CONCERNING SCARCE RESOURCES.

    IS A COMMON BUSINESS PLANNING TOOL THAT INVOLVES


    COMPARING THE LIKELY COSTS AND BENEFITS OF
    POTENTIAL PROJECTS TO CHOOSE THOSE THAT OFFER
    THE GREATEST NET BENEFIT.
    TYPES OF COSTS AND BENEFITS
    Private Cost vis-à-vis Private Benefit
    Private cost is any negative effect on an
    organization resulting from the implementation of
    the project while any positive effect is private
    benefit.

    Private Cost is the cost to the producers


    Private Benefit is the profit the producers get in the
    production process
    External Cost vis-à-vis External Benefit

    External Cost occurs when producing or


    consuming good or service that imposes a cost to
    other party.

    External Benefit occurs when producing or


    consuming a good or service imposes a benefit to
    a third party.
    Social Cost vis-à-vis Social Benefit
    Social Cost is the sum of the private cost and
    external cost.
    Social Benefit private benefits gained by the
    individuals directly involved in a transaction
    together with the external benefits gained by the
    third parties not directly involved in the
    transaction.

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