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Cost-Benefit Analysis Theory week 3 discussion 1

What is a cost-benefit analysis and who should be responsible for conducting one?  When is the most appropriate time in the budget cycle to conduct the analysis and why?  Should each cost be subjective to a cost-benefit analysis? Why or why not? 

Our discussion first then the individuals response tell the bad and good of post list references thank

(Jus) wrote cost-benefit analysis is an examination of a new program, piece of equipment, or other budget line item in terms of what the costs are versus the benefits that can be realized from its implementation. 

The most appropriate time in a budget cycle to conduct a cost-benefit analysis would be during the policy direction phase, where budget issues are identified and priorities are set.  Once desired goals are set, a cost-benefit analysis can be performed in order to determine what budget items can be implemented and what will provide the greatest return on investment.

I believe that nearly everything in a policy agency budget should be subject to a cost-benefit analysis, since a thorough analysis will determine what is most efficient in terms of results produced and costs saved.


Mikesell, John. Fiscal Administration, 8e, 8th Edition. Wadsworth, 01/2014. VitalBook file.

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