Cost Benefit Analysis By Bhupendra Ratha, Lecturer School of Library and Information Science Devi Ahilya University, Indore Email: bhu261@gmail.com
Cost Spending time for each operation by staff members. Material costs including renting, spares, consumables etc. Running cost Overhead cost including premises, insurance, general servicing etc.
Benefit Economic benefit, The positive contribution to gross product from an economic activity or project. Employee benefit, non-monetary employment compensation Benefit concert, or any activity performed for a charitable and service purpose
Cost-benefit analysis A cost benefit analysis is done to determine how well, or how poorly, a planned action will turn out. although a cost benefit analysis can be used for almost anything.
History of CBA The practical development of CBA came as a result of the impetus provided by the Federal Navigation Act of 1936. This act required that the U.S. Corps of Engineers carry out projects for the improvement of the waterway system.
Objective of the cost benefit analysis Determine the actual benefit of whole organization. Determination of benefit through a particular job. Identification of the cost for each operations. Clarify the forms of cost for particular activities. Evaluation of the cost effectiveness
Principles of CBA There must be a common unit of measurement Benefits are usually measured by market choices Cost benefit analysis involves A particular study area Double counting of benefits or costs must be avoided Decision criteria for projects should be clear
CBA and CEA Cost-effectiveness analysis is a form of economic analysis that compares the relative expenditure (costs) and outcomes (effects). Cost-effectiveness analysis is generally not equivalent to cost-benefit analysis
Evaluation of CEA in Libraries According to objective of libraries. According to users satisfaction. According to purpose of each and every program of various section. According to output of library service. According to fulfillment of five law of library science.