kustannushyötyvertailu

Kustannushyötyvertailu, often translated as cost-benefit analysis (CBA), is a systematic process used to evaluate the economic feasibility of a project, decision, or policy. It involves identifying, quantifying, and comparing all the costs associated with an action against all the benefits it is expected to generate. The primary goal is to determine whether the anticipated benefits outweigh the anticipated costs.

The process typically begins with defining the scope of the analysis and identifying all relevant stakeholders. Costs can be direct, such as material expenses and labor, or indirect, like environmental impacts or opportunity costs. Similarly, benefits can be tangible, like increased revenue or cost savings, or intangible, such as improved public health or enhanced customer satisfaction.

To facilitate comparison, all costs and benefits are usually expressed in monetary terms. This often requires assigning a monetary value to non-market goods or services, which can be a challenging aspect of CBA. Discounting future costs and benefits to their present value is also a crucial step, reflecting the time value of money.

The outcome of a kustannushyötyvertailu is typically a net benefit or net cost. If the total benefits exceed the total costs, the project or decision is generally considered economically viable. Conversely, if the costs are greater than the benefits, it may not be deemed worthwhile. CBA is widely used in government, business, and environmental policy-making to inform decision-making and allocate resources efficiently.