Cost Benefit Analysis is a method used to compare the costs and benefits of different solutions or alternatives to a problem. It takes into account all of the relevant factors including time, money, resources and risks. The aim is to identify the solution that provides the most favourable outcome – the one with the highest benefit-cost ratio. By carrying out a cost benefit analysis, businesses can determine which decision would yield the best results in both the short and long term. This type of analysis is an essential tool for helping businesses make informed decisions that balance economic considerations with other non-financial objectives.