5. The cost/benefit ratio
The benefit-cost ratio compares the cost of different options with the project benefits. It helps to select the best alternative:
a benefit/cost ratio greater than 1 means that the benefits are greater than the costs;
a benefit/cost ratio of less than 1 means that benefits are lower than costs.
The Ultimate Scientific and Technical Reference
This article is included in
Design and engineering management
This offer includes:
Knowledge Base
Updated and enriched with articles validated by our scientific committees
Services
A set of exclusive tools to complement the resources
Practical Path
Operational and didactic, to guarantee the acquisition of transversal skills
Doc & Quiz
Interactive articles with quizzes, for constructive reading
The cost/benefit ratio
Develop the business model (business plan and business case) and manage the project portfolio
Bibliography
Also in our database
Bibliography
International Project Management Association, International Competence Baseline - ICB version 3 : 1.13 - Cost and Finance and 3.10 : Finance Management
Managing Successful Projects (MSP) with PRINCE2 ® , chap. 13 "Project Management Components - The Business Case".
Project Management Institute,...
The Ultimate Scientific and Technical Reference
