answersLogoWhite

0


Best Answer

When you are trying to make a cost benefits analysis, you have to weigh the pro's and con's of every option; these are called opportunity costs, opportunity costs are what you choose NOT to buy. The cost, is that you did NOT get this, the opportunity is what you got instead.

It is a subjective process due to the fact that it is an individually variable process; what I mean by this is, if 2 people have the same option to either have a car or a house, 1 guy picks the house so he will have shelter and he has a job that is really close to home, so walking or taking a bus wont cost much (walking and taking the bus is what he has to do, having the house is his opportunity, Not getting the car and having to walk/ride the bus is his cost). Now, the next man works very far into town, so taking a bus or walking is too expensive and too time consuming, so he will get the car and not the house, now he has the car and transport too work, but no house, so he will have to rent an apartment.

These 2 men had the same options, but they made different decisions bc they had a different viewpoint and the opportunity costs were different to them. So, this is subjective because it has to do with personal needs that differ from person to person, even if the options are the same for everyone.

User Avatar

Wiki User

9y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Explain why cost benefit analysis is a subjective process?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What does 'process analysis' refer to?

Process analysis refers to a presentation of a series of events that can explain how something is done. It can also explain how to do something, and is usually written in paragraph or essay form.


What benefit analysis is a process that involves?

Maximizing benefits and minimizing costs


What cost benefit analysis is a process that involves?

Maximizing benefits and minimizing costs


What Cost-benefit analysis is a process that involves?

Maximizing benefits and minimizing costs


Explain why its rational use the cost-benefit analysis?

It is a simple technique that needs to be used to save money. It helps figure out if doing something or hiring someone new is going to be worth the money that is spent to do this process.


Cost benefit analysis is a process that invloves whcih of the following?

Maximizing benefits and minimizing costs.


What process is used to determine if the benefits caused by mitigation exceed the cost of the solution?

benefit/cost analysis


What process is used to determine if the benefits caused by mitigation exceed the cost of the solutions?

benefit/cost analysis


What process is used to determine if the benefits caused by mitigation exceed the costs of the solution?

benefit/cost analysis


Is-279 test answers?

. Benefit-cost analysis is part one of the primary steps in the retrofitting process.


What is process analysis?

Creating a presentationProcess Analysis: Presents a chronological sequence of steps that explain how something is done, how something happens, or how readers can do something.


Is-279 fema test answers?

. Benefit-cost analysis is part one of the primary steps in the retrofitting process.