How does cost-benefit analysis impact a BCA?

Cost-benefit analysis is a systematic approach used to evaluate the strengths and weaknesses of alternatives in terms of costs and benefits. This method is crucial in a business case analysis (BCA) as it provides a framework that allows stakeholders to easily compare the expected benefits of a project against its associated ongoing costs.

By emphasizing the balance of benefits and costs, the analysis facilitates informed decision-making. If the benefits outweigh the costs, it suggests that the project may be worth pursuing. This direct comparison aids in justifying whether a project will deliver sufficient value to warrant the investment, thus serving as a key component of financial evaluation in project planning.

The other options touch on different aspects of project evaluation but do not align directly with the specific purpose of a cost-benefit analysis in a BCA. Evaluating project timelines, risk assessments, or technical feasibility all provide valuable insights but are separate from the core intent of assessing and comparing tangible costs with benefits.