comparedcost
Comparedcost is a metric used in decision analysis to express how two options differ in cost. It indicates whether one option is more or less expensive, and by how much, relative to a chosen reference. In practice, comparedcost can be reported as an absolute difference in currency or as a relative percentage.
For two options with costs cA and cB, the absolute comparedcost is cA − cB. The relative comparedcost
Comparedcost is used in supplier selection, budgeting, and project evaluation to contrast alternative solutions. In procurement,
Limitations include that comparedcost does not account for non-monetary value, total cost of ownership, timing of
See also: cost difference, cost ratio, total cost of ownership, cost-benefit analysis, economic evaluation.