Question

Difference between social cost benefit analysis and financial analysis

Answer 1

The basic difference between them is that the financial analysis compares benefits and costs to the enterprise, while the economic analysis compares the benefits and costs to the whole economy. ... Economic analysisattempts to value such externalities in order to reflect the true cost and value to the society.

Answer 2

Difference between social cost benefit analysis and financial analysis:

Analysis is always been crucial for taking right decision with social cost benefits and financial requirements.  

Explanation:

• Economic analysis is related to the analysis of the whole economy while financial analysis stands for analysis of enterprise as a whole.

• Economic analysis depicts true value of the economy while financial analysis depicts true value of the enterprise.

• Economic analysis compares the cost as a whole while financial analysis compares the cost of an enterprise.  

• Economic analysis is the part of the macro economics while financial analysis is the part of micro economics.