What is the significance of 'cost-benefit analysis' in resource allocation? (202

What is the significance of 'cost-benefit analysis' in resource allocation? (2023)

What is the significance of 'cost-benefit analysis' in resource allocation? (2023)

Step 1: Understand what cost-benefit analysis means. It is a method used to evaluate the advantages (benefits) and disadvantages (costs) of a decision.
Step 2: Recognize that in resource allocation, we have limited resources (like money, time, or materials) that need to be used wisely.
Step 3: Realize that cost-benefit analysis helps in comparing different options by showing which one gives the most benefits for the least cost.
Step 4: Identify that using cost-benefit analysis can lead to better decision-making, ensuring resources are allocated to projects or options that provide the greatest overall value.
Step 5: Conclude that the significance of cost-benefit analysis lies in its ability to guide effective resource allocation, helping to maximize benefits while minimizing costs.

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