Question

Cost benefit analysis-quantitative and qualitative aspects in mis

Answer 1

Cost benefit analysis is one of the methods by which the costs involved in a particular project are compared to financial gains before making an investment in a particular project.   Quantitative factors include tax concessions, rebates and discounts etc expected on constructing a factory in a certain region. These benefits can be easily measured and shown in accounting books.   Qualitative factors include intangible benefits which cannot be measured in monetary terms. These include goodwill of a school or business which will increase by taking a decision.