An assessment of costs and benefits inevitably involves
A) facts.
B) monetary costs only.
C) false opinions.
D) value judgements and factual uncertainties

Question

Quizplus · Accepted Answer

Assessing costs and benefits involves both value judgments and factual uncertainties. Value judgments are necessary because the benefits and costs of a decision may have different significance to different people or organizations. Factual uncertainties arise because it may not be possible to measure or quantify all relevant costs and benefits accurately. A full and accurate cost-benefit analysis will involve weighing up different costs and benefits, taking into account the value that different stakeholders place on them, and recognizing any uncertainties about the data used.

An Assessment of Costs and Benefits Inevitably Involves