Question

provide a brief introduction on the topic Cost-Benefit Analysis – Why it is necessary for PICs such as fiji for Accountability

Answer 1

Cost benefit analysis is also known as benefit cost analysis is a symmeytric approch to estimating the strengths and weakness of alternatives used to determine options which provide the best approch to achieving benefits while preserving savings

A cost benfit analysis is used to compare completed or potential courses of actions or to estimate the value against the cost of a decision, project or policy. It is commonly used in commercial transactions, business or policy decisions and project investments.

It is necessary because:-

# If an investment is sound , asceratining if - and by how much , its benefits overweigh its cost.

# To provide a basis for comparing investments comparing the total expected cost of each option with its total expected benefits.

We can take example of fiji as :-

A cost benefit study was conducted on disaster risk reduction ( Adaptation) measures for flooding in the Ba River Catchment in Viti levu, Fiji. It defined the most economically effective adaptation option for communities and households against flooding - The analysis accounted for the biophysical and socioeconomic impacts of flooding , the costs, benfits , and feasibility and the potential effects of climate change.

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