Advantages:-The main advantage of cost benefit analysis is its simplicity. Cluster analysis, based on the results of factor analysis, indicates that participants can be classified into several clusters with particular characteristics in their behavior. Social cost benefit analysis (SCBA)called Economic analysis, is a methodology developed for evaluating investment projects from the point of view of the society as a whole. Today the impacts of a potential merger on competition require heightened scrutiny Cost Volume Profit Analysis explains the behavior of profits in response to a change in cost and volume. Social cost-benefit calculates non-monetized benefits/ losses. Advantages and Disadvantages of Cost Benefit Analysis Cost benefit analysis can be a helpful tool for businesses or individuals to undertake when considering a new course of action. 4 See, e.g., Puget Sound Power Docket No. Abstract—Cost benefit analysis (CBA) is a systematic process for calculating and comparing benefits and costs of a project, decision or policy with the aim of determining if a particular project or policy is a sound investment or not .In CBA, the Total Expected Cost of each option is compared against the SCBA aids in evaluating individual projects within the planning framework which spells out national economic objectives and broad allocation of resources to various sector. There are some advantages and disadvantages of cost and benefit analysis. competition but has no jurisdiction to address impacts). Cost Benefit Analysis (CBA) refers to a mathematical approach that helps in the comparison of the cost and expected benefits of two or more options or projects. Benefit/Cost Analysis “Things don’t have costs; choices do.” Benefit/Cost analysis involves the search for all alternatives. It is normally used for large fund projects like constructing a dam, a road. Advantages It facilitates selection of cheaper yet effective drugs or interventions. Therefore, it helps an individual or an organization to determine which potential decision can make the … As with all techniques there are advantages and disadvantages to using it to help plan organizational strategy. UE-951270, (Washington UTC 1997). para. You are simply looking at whether benefits outweigh costs. 5 See Pacific Gas and Electric Company, 77 F.E.R.C. Social cost benefit analysis has been introduced to develop systematic ways of analyzing cost and benefits of factors which do not have market prices, like effect on environment and traffic. 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