scholarly journals COST - BENEFIT ANALYSIS

Author(s):  
Nizamulmulk Gunes

Cost - benefit analysis (CBA) is a method that is used for making investment decisions in public and private sector, and comparing benefits and costs resulting from the investments. This method attempts to determine present value of potential benefits and costs of any intended investment, and selects the project with the most benefits by comparing various projects designed for the investment.

Author(s):  
Tetyana Kibuk

The article is devoted to the study of one of the most relevant and widely used tools of the modern decision-making process at the national and international levels – cost-benefit analysis (CBA). The article defines the purpose of the cost-benefit analysis. Three approaches to the selection of CBA stages are analyzed, among which there are three, from five to seven and ten stages. Their advantages and disadvantages are highlighted. The modern stages of the analysis of benefits and costs are systematized, namely: determining the level of analysis and its purpose; identification of alternatives to the public project; identification of the list of benefits and costs of the project; valuation in monetary terms of certain benefits and costs; establishing project evaluation criteria; discounting benefits and costs to obtain the present value of the project; determination of the net present value of social project options; analysis of the sensitivity of the social project; analysis of the distribution of existing benefits from the public project and selection one project among several alternative ones for implementation. The figures of the choice of existing alternatives of the public project are analyzed. Existing types of project costs are identified, including direct, indirect, tangible, intangible, opportunity and real costs. The list of benefits investigated by the analysis is determined, which include: monetary, non-monetary and intangible benefits. The difference between monetary valuation of project benefits and costs at shadow and market prices is investigated. The most common selection criteria in the modern project decision-making process are analyzed. The peculiarities of the formation of the social discount rate are highlighted. The features of sensitivity analysis and the purpose for its implementation are determined. Existing types of uncertainty and ways to overcome them are summarized, namely knowledge uncertainty, policy uncertainty and future uncertainty. The specifics of decision making in the cost-benefit analysis are studied. Further directions of research of problematic questions of the cost-benefit analysis in modern economy are identified.


Author(s):  
Sherry D. Ryan ◽  
Michael S. Gates

Researchers have attempted to augment the traditional cost/benefit analysis model used in the IT decision process. However, frequently social subsystem issues are inadequately considered. Survey data, collected from a U.S. sample of 200 executives, provides an empirical assessment of how these issues compare with other IT decision criteria given differing decision types. The social subsystem issues considered most important by decision makers are also identified and the manner by which they consider these issues is investigated.


2011 ◽  
Vol 4 (1) ◽  
pp. 106-108 ◽  
Author(s):  
Heiner Römer ◽  
Alexander Lang ◽  
Michael Pfeiffer ◽  
Manfred Hartbauer

2020 ◽  
Vol 15 (1) ◽  
pp. 91-101
Author(s):  
Elfitri Santi ◽  
Afridian Wirahadi ◽  
Arif Wahyu Saputra ◽  
Rasyidah Mustika ◽  
Ferdawati

The official goverment vehicles supply demand the goverment allocate fund in carefully and precise based on the needs. The value of money analysis between buy, rent, and leasing to supplying the official vehicles in Polytechnic State’s of Padang. intent on calculating, analyze, and comparing which alternative that make more value of money between the provisions system of buying, renting and leasing. Methods this Research is Qualitative and The analysis instrument that use in this research is Net Present Value Method also calculating the cost benefit analysis . The research examine 3 type or merk that represent the officeholder vehicles, such as Toyota Hiace Commuter, Kijang Innova V A/T, dan Avanza Veloz. The result of this research indicated that officeholder vehicles supplying system through the buying system is has more benefit that follow by the leasing system and the renting system. This research result could be a reference for Goverment in choosing supplying system of officeholder vehicles in Padang State’s Polytechnic.


2020 ◽  
Vol 7 (4) ◽  
pp. 177-185
Author(s):  
Kepha Luvinga ◽  
Simon Kilasara

ABSTRACT This study reports upon the findings on the cost and profitability of bodaboda transport business among youths in Arusha. As used in this study, the term bodaboda applies for a two wheeled motorized taxi which provides ‘for hire’ type transport services to passengers and goods. The bodaboda have became an employment opportunity to many unskilled urban labour and further job opportunity to informal sector workers who wish to switch jobs in search of higher rewards. The questionnaires were used to collect data to 90 respondents from two districts of Arusha region namely Arusha and Meru district. Data analysis was done using descriptive statistics and cost benefit analysis. The finding from the study indicates that the bodaboda transport business is profitable with the benefit cost ratio (BCR) of 2.8 and the net present value (NPV) of 8,494,920Tsh for five years project duration. By having the benefit cost ratio and the net present value greater than 1, the bodaboda business is profitable and worth being undertaken. Based on the findings from the study it is recommended that the government authorities and all key stakeholders should regulate, and support the implementation of bodaboda bussiness through formalization of bodaboda associations, assurance of financial supports and capacity building to youths who engage or willing to engage in the business.


2019 ◽  
Vol 11 (1) ◽  
pp. 101-130
Author(s):  
Onil Banerjee ◽  
Martin Cicowiez ◽  
Adela Moreda

AbstractVarious methods have been applied to evaluating the economic viability of public investments in tourism. In this article, we capitalize on the strengths of computable general equilibrium and cost-benefit analytical techniques and develop an integrated approach to evaluating public investments in tourism. We apply the approach to the evaluation of a US$6.25 million investment in tourism in Uruguay from the perspective of a multilateral development bank and a beneficiary government. These perspectives differ in a cost-benefit analysis (CBA) due to the timing of the costs incurred. The integrated approach is powerful in that it captures first and subsequent rounds of investment impacts of benefits and costs; resource diversion and constraints are accounted for, and the estimation of benefits is consistent with the welfare economics underpinnings of CBA.


Author(s):  
Hubert Vasseur ◽  
Thomas R. Kurfess ◽  
Jonathan Cagan

Abstract Due to several possible production modes, an industrial output may have different quality levels. Production processes and quality assurance plans are chosen and adjusted, generally as a lagged reaction to customers’ input and competitors’ strategy. Different techniques based on cost benefit analysis have existed to assess beforehand the overall benefits to society of such decisions; however, these techniques do not necessarily provide any insight as to the resulting influence on corporate profits. This paper reviews different perspectives on industrial quality and adopts a formalism in which social and corporate optimum can be compared from an engineering standpoint. The potential benefits for a manufacturer to improve the quality of its products are studied under several market conditions. The incentive is the strongest in a competitive environment where the benefits of quality innovation are twofold: quality innovation increases consumers’ demand and allows the manufacturer to keep more substantial profit margins.


1981 ◽  
Vol 11 (3) ◽  
pp. 637-642
Author(s):  
Per-Olov Johansson

For some years it has been claimed that there is a "shortage" of roundwood in Sweden. The purpose of this paper is to examine what is meant by this shortage and to estimate social benefits and costs of an increased supply of roundwood. The estimates indicate that it is profitable for the society to eliminate the excess demand (shortage) through an increased supply.


Sign in / Sign up

Export Citation Format

Share Document