Nutzenrechnung

Nutzenrechnung, often translated as utility calculation or cost-benefit analysis, is a method used to quantify and compare the benefits derived from an action or investment against its associated costs. The core principle is to assign a monetary value to both the positive outcomes (benefits) and the negative outcomes (costs) of a decision. This allows for a more objective evaluation, particularly when dealing with projects, policies, or personal choices where outcomes may not be immediately obvious or easily quantifiable.

The process typically involves identifying all relevant benefits and costs. Benefits can include increased revenue, improved efficiency, enhanced safety, or greater customer satisfaction. Costs encompass direct expenses, labor, time, and potential risks or negative externalities. Once identified, these factors are then estimated in monetary terms. This can be straightforward for direct financial items but requires more sophisticated techniques for intangible benefits or costs, such as using willingness-to-pay surveys or estimating the economic value of environmental improvements.

The final step in a Nutzenrechnung is to compare the total estimated benefits with the total estimated costs. If the benefits outweigh the costs, the action is generally considered economically justifiable. Conversely, if the costs are higher, the decision may be reconsidered. This analytical tool is widely applied in business, government, and economics to support decision-making and resource allocation, aiming to maximize net benefit and achieve efficient outcomes.