Cost Based Analysis is a technique used by businesses to assess the cost-effectiveness of their activities and make informed decisions. The process involves collecting and analyzing data on expenses, revenue, and profitability – this data is then compared against industry averages or predetermined goals to determine whether an activity can be deemed cost-effective. By understanding and managing costs, businesses can stay competitive in the ever-changing market and ensure that their activities are as efficient as possible. Cost Based Analysis isn’t just about saving money; it’s about smart decision-making that ensures your business stays successful in the long run.