What is the primary focus of the 'Cost-Benefit Analysis' in resource allocation? (2023)
Practice Questions
1 question
Q1
What is the primary focus of the 'Cost-Benefit Analysis' in resource allocation? (2023)
To minimize costs while maximizing benefits
To ensure equal distribution of resources
To evaluate the environmental impact of resource use
To assess the market value of resources
Cost-Benefit Analysis primarily focuses on minimizing costs while maximizing benefits, providing a framework for making informed resource allocation decisions.
Questions & Step-by-step Solutions
1 item
Q
Q: What is the primary focus of the 'Cost-Benefit Analysis' in resource allocation? (2023)
Solution: Cost-Benefit Analysis primarily focuses on minimizing costs while maximizing benefits, providing a framework for making informed resource allocation decisions.
Steps: 5
Step 1: Understand what 'Cost-Benefit Analysis' means. It is a method used to evaluate the costs and benefits of a decision or project.
Step 2: Identify the costs involved. This includes all expenses that will be incurred.
Step 3: Identify the benefits. This includes all the positive outcomes or gains from the decision or project.
Step 4: Compare the total costs to the total benefits. This helps to see if the benefits outweigh the costs.
Step 5: Make a decision based on the comparison. If benefits are greater than costs, it is a good choice; if not, reconsider.
