SOLD BY: COST BENEFIT ANALYSIS
The term cost benefit analysis as Broadway pointed out refers to the measurement of the economic benefits from any change in resources allocation. In the context of public finance, it most often refers to calculation of net special benefit arising from specific public expenditure such as road, irrigation or a disease control programme.
Nepworth (2000) defined cost benefit analyses as a technique for use in either investment appraisal or measuring the cost and benefit of the community adopting specified course of action.
The objective of cost benefit analysis is that it tries to take into account all the cost and benefits which will accrue from project.
Therefore, cost and benefit are defined in the widest sense and not only to narrow accounting definitions.
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