C
Cost Benefit Analysis: What it actually means?
Cost–benefit analysis (CBA) is a structured way to compare the total expected costs of an initiative with its total expected benefits, expressed in financial terms wherever possible. Consultants identify and quantify capex, opex, change-management and opportunity costs, then set these against revenue growth, cost savings, risk reduction or social benefits. Sensitivity and scenario tests are used to show decision-makers how robust the case is. CBA is widely used in public sector, infrastructure and large IT programmes where choices are high-value and scrutiny is high. A clear CBA makes approval easier and provides a baseline for post-implementation review.
