Cost Benefit Analysis in the PMP Exam

A cost-benefit analysis can help you to figure out whether or not the project is viable. An example is if all the benefits outweigh the costs. But if the costs outweigh the benefits, then it doesn't make sense. The costs of your project may not be worth it if it has no foreseeable benefits. Consider the time and effort involved in the project versus what you will gain from it before making a decision. In addition, a CBA can help us identify where we should invest more resources. 

By considering both the expenses incurred as well as the expected benefits, a cost-benefit analysis evaluates the merits of a potential project. Analyses of this type are often used to decide whether to invest in projects, such as new businesses. The dilemma is oftentimes tough to resolve so it's advisable to take a closer look at both sides before deciding.

Therefore we may conclude that it is primarily used in the following performance domains;

See also:

Trend Analysis

Benefits Management Plan

Business Justification Analysis