Cost-benefit analysis
- Pronunciation
- /cost-BEN-uh-fit anal-ih-sis/
- Category
- Decision-Making
- Singular
- Cost-benefit analysis
- Plural
- Cost-benefit analyses
Definition
A systematic process of evaluating the economic viability of a project or decision by comparing the estimated costs and benefits.
Etymology
Originated in the mid-20th century as a tool for public policy decision-making.
Example
Before implementing a new pest control strategy, entomologists often conduct a cost-benefit analysis to determine if the benefits outweigh the costs.
Synonyms
- Cost-effectiveness analysis
Related Terms
- Economic threshold
- Return on investment
- Risk assessment
Usage Notes
In entomology, cost-benefit analyses can help to prioritize research and management efforts.