Question

The formula for value is benefits vs. costs True or False?

The formula for value is benefits vs. costs

True or False?

Homework Answers

Answer #1

True.

Explanation:

The cost-benefit analysis is the process of determining the value derived from a particular thing. The value of that particular thing can be positive or negative. Further, the cost-benefit analysis also helps in taking the decision as to whether one should do or refrain from doing a particular thing. If the value is positive, then the thing should be taken-up otherwise it can be dropped.

For the purpose of calculating value, the costs should be deducted from the benefits. If it gives a positive figure, it is worth doing that activity.

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