What is cost-benefit analysis? (1 point)

Question

Cost-benefit analysis is used when the costs outweigh the benefits of a plan in an attempt to reduce the costs or increase the benefits.
Cost-benefit analysis is used to make a comprehensive list of all benefits and costs in a plan. Then, those benefits and costs are ranked and examined.
Cost-benefit analysis is used to determine whether or not the benefits of a proposed plan are greater than its costs.
Cost-benefit analysis is used to aggregate the costs from several different plans and aggregate the benefits from those plans so that the plans can be examined at as a single entity.

Answer 1

Cost-benefit analysis is a systematic process for evaluating the pros and cons of a project or decision by comparing the costs involved with the potential benefits that can be gained. This analysis helps decision-makers determine whether the benefits of a proposed action outweigh the costs, allowing for more informed and rational decision-making.