Glossary and Acronyms

Benefit/Cost Analysis (B/C Analysis)

An analysis that includes identifying and quantifying costs and the benefits of a project. When benefits are divided by costs, the ratio indicates the theoretical effectiveness of a project. A project with a B/C of over 1.0 means the project has more benefits than costs. A higher B/C ratio may indicate a more beneficial project when comparing projects. Some benefits are more qualitative in nature and may not be captured, so a B/C ratio may be one of many variables considered in project selection.


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