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Issue 17: The Cost-Benefit Analysis Simplified

Skip Level Strategies

May 05, 2024•1 min read

Issue 17: The Cost-Benefit Analysis Simplified

"Measure what is measurable, and make measurable what is not so."

-Galileo Galilei

Welcome to our our seventeenth edition!

This issue breaks down the Cost-Benefit Analysis, a simple financial decision-making framework for comparing the costs and benefits of a decision, project, or policy. It's particularly helpful when there's not a clear "go ahead" for the project or decision in question.

5-MINUTE STRATEGY

List all the costs associated with a decision or project.
List all the benefits you expect from it.
Assign a monetary value to each cost and benefit, even if it's intangible.
Subtract the total costs from the total benefits to determine net gain or loss.

Why this matters: Cost-Benefit Analysis provides a straightforward method for evaluating decisions in terms of financial impact, helping ensure you use your time, effort, and budget effectively.

Next week's preview

Next week, we revisit a timeless decision-making tool: the Pros and Cons List. Discover how this simple yet effective framework can help you assess the benefits and drawbacks of any decision, leading to clearer, more confident choices.

Until then,

Asia

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Cost-Benefit AnalysisFinancial decision-makingDecision-making frameworkCompare costs and benefitsFinancial impactBudget effectivenessNet gain or lossAssigning monetary valueStrategy for evaluating decisionsAssessing benefits and drawbacks