Procurement Acronyms

CBA (Cost Benefit Analysis)

CBA (Cost Benefit Analysis)

Cost Benefit Analysis (CBA) is an economic tool for evaluating the costs of a project in comparison to its anticipated benefits. This method of analysis helps businesses make decisions on whether or not to proceed with a given venture by weighing the monetary value of all potential risks, opportunities and objectives associated with the project. CBA is an important part of informed decision-making in procurement, as it allows organizations to clearly quantify the financial implications of their proposed investments before committing resources.