Q1: What is the main purpose of conducting a Cost-Benefit Analysis (CBA)?
A1: The main purpose of CBA is to help you make informed decisions by systematically comparing the total estimated costs of a project or decision with its total estimated benefits, allowing you to see if the benefits outweigh the costs.
Q2: When should I consider performing a Cost-Benefit Analysis?
A2: You should consider performing a CBA when evaluating significant business decisions, such as expanding a service (like adding after-sales service), investing in new equipment, or implementing a new project, to ensure the decision is financially sound.