The concept of considering both the costs and benefits of a proposal is known as:

Question

Quizplus · Accepted Answer

Cost-benefit analysis is the process of evaluating the costs and anticipated benefits of a proposal to determine whether it is economically feasible and worthwhile. It helps in making informed decisions by comparing the expected benefits of a project or program with its costs. Therefore, it is the most appropriate choice. Option B is incorrect because Performance measurement focuses on measuring the efficiency and effectiveness of an ongoing or completed activity, while option C Non-value added analysis, is a method of identifying activities that do not add value to the end product or service. Lastly, option D, Preparation of financial statements, involves the preparation and presentation of financial statements, including the balance sheet, income statement, and cash flow statement, which focus on the financial performance of the company.

The Concept of Considering Both the Costs and Benefits of a Proposal