International Journal of Applied Research
Vol. 2, Issue 1, Part H (2016)
Cost benefit analysis: A tool for individuals to make an optimum choice
Due to unlimited wants and limited resources the problem of choice occurs and to make efficient decisions, people do cost benefit analysis. In cost benefit analysis, both direct (i.e., internal) and indirect (i.e., external) costs of a project to the society as well as its direct and indirect benefits to the society are estimated. Thus, the main objective of this paper is to study cost benefit analysis from the view point of individuals for making optimum choices. Initially, cost-benefit analysis was developed to evaluate public sector investment project but is now being used by decision making by the individuals as well as private sector. It is also a method of evaluating public projects and expenditure programmes for making decisions regarding the desirability of the projects to be undertaken.
How to cite this article:
Shiv Kumar. Cost benefit analysis: A tool for individuals to make an optimum choice. International Journal of Applied Research. 2016; 2(1): 498-500.