cost-benefit analysis

approach to estimating the strengths and weaknesses of alternatives. It is used to determine options which provide the best method to achieving benefits while preserving savings in, for example, transactions, activities, and functional business requirements. Benefits and costs in CBA are expressed in monetary terms and are adjusted for the time value of money; all flows of benefits and costs over time are expressed on a common basis in terms of their net present value, regardless of whether they are incurred at different times.

  • Abbreviation(s): CBA