Kostenfolgenabschätzung

Kostenfolgenabschätzung, often abbreviated as Kostenfolgenab, is a German term that translates to "cost consequence assessment" or "cost impact assessment" in English. It refers to a systematic process used to analyze and evaluate the potential financial repercussions of a particular decision, project, policy, or action. The primary goal of a Kostenfolgenabschätzung is to identify, quantify, and understand all the direct and indirect costs associated with a chosen course of action.

This assessment typically involves forecasting future expenses, considering both immediate and long-term financial implications. It seeks to anticipate not only the explicit costs, such as initial investment or operational expenses, but also implicit costs, like opportunity costs or potential loss of revenue. The process often includes identifying potential risks that could lead to cost overruns and exploring mitigation strategies.

Kostenfolgenabschätzung is a crucial tool in economic decision-making, project management, and public policy development. By providing a comprehensive overview of the financial landscape, it allows stakeholders to make more informed choices, compare different alternatives, and allocate resources effectively. The results of a Kostenfolgenabschätzung can influence whether a project proceeds, how it is implemented, and what measures are put in place to control expenditure. It helps to ensure that financial viability is thoroughly considered before committing to significant endeavors.