Cost Benefit and Effectiveness Analysis (CBA and CEA)
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Define Cost Benefit Analysis (CBA).
Define Cost Effectiveness Analysis (CEA).
Then compare and contrast the differences and similarities of a CEA and CBA.
Be sure to cite your sources of information and provide examples.
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Solution Summary
This posting gives you a step-by-step explanation of cost benefit analysis and cost effectiveness analysis. The response also contains the sources used.
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Step 1
Cost Benefit analysis is an approach to finding the strengths and weaknesses of alternatives that satisfies transactions, activates, or functional requirements for a business. Cost benefit analysis is used for justification of investment decision. It gives a basis for comparing projects. The method totals up the equivalent money value of the benefits and costs of the project (b). An example is the cost benefit analysis in a multinational corporation that markets fast food products. ...
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