Question

Cost-benefit analysis is a process that involves which of the following?

O
A. Maximizing benefits and minimizing costs.
O
B. Accurately predicting the effects of every decision.
O
c. Determining the profit that results from production decisions.
O
D. Calculating a budget for each expense.

Answer 1

Step-by-step explanation:

X

A. Maximizing benefits and minimizing costs.

X

B. Accurately predicting the effects of every decision.

√

c. Determining the profit that results from production decisions.

X

D. Calculating a budget for each expense.

Answer 2

c. Determining the profit that results from production decisions.

Step-by-step explanation:

Cost-benefit-analysis( CBA) is a business decision-making tool that helps managers analyze and decides on projects. The CBA approach compares the total benefits arising from a situation or a project against its related costs before making a decision. This approach uses financial data, such as expected revenues and expenses, to determine the viability of projects.

Undertaking a cost-benefit analysis assists the business to engage in profitable ventures only. The CBA method ensures a business stays profitable by rejecting proposals that are likely to results in losses.