Question

Cost benefit analysis-quantitative and qualitative aspects in mis

Answer 1

Cost benefit analysis involves the weighing of the costs associated with a decision against the benefits arising from that decision. The analysis is used to decide whether to proceed with a course of action or not. Cost benefit analysis can include both quantitative and qualitative factors. For example, the analysis of a decision to construct a facility in a particular city could include quantitative factors, such as the amount of tax breaks that can be obtained, as well as qualitative factors, such as the rating of the schools in that city to which workers would send their children.

Answer 2

Quantitative aspect of Cost Benefit Analysis.

Cost-benefit analysis checks the consequences of your decision quantitatively like determining the number of customers or price, leading to the calculation of revenues and costs and the corresponding profitability of the idea.

Qualitative aspect of Cost Benefit Analysis.

In terms of Qualitative aspect, this might be more important in the final decision making, E.g., the culture of the firm. Even though it is critical to quantify the business idea in terms of profitability, you must ignore the qualitative aspects, which often give insights about the implementation of ideas.