Cost Benefit Analysis Practice Exam

About Cost Benefit Analysis
A cost-benefit analysis is a systematic process that businesses use to analyze which decisions to make and which to forgo. The cost benefit analyst sums the potential rewards expected from a situation or action and then subtracts the total costs associated with taking that action. Some consultants or analysts also build models to assign a dollar value on intangible items, such as the benefits and costs associated with living in a certain town.

 In many models, a cost-benefit analysis will also factor the opportunity cost into the decision-making process. Opportunity costs are alternative benefits that could have been realized when choosing one alternative over another. In other words, the opportunity cost is the forgone or missed opportunity as a result of a choice or decision. Factoring in opportunity costs allows project managers to weigh the benefits from alternative courses of action and not merely the current path or choice being considered in the cost-benefit analysis.

By considering all options and the potential missed opportunities, the cost-benefit analysis is more thorough and allows for better decision-making.

Why is Cost Benefit Analysis important?
Performing cost benefit analysis allows companies to measure the benefits of a decision (benefits of taking action minus the costs associated with taking that action). It involves measurable financial metrics such as revenue earned, and costs saved as a result of the decision to pursue a project.

Cost benefit analysis offers unique and valuable insight by
•    Developing benchmarks for comparing projects
•    Deciding whether to pursue a proposed project
•    Evaluating new hires
•    Weighing investment opportunities
•    Measuring social benefits
•    Appraising the desirability of suggested policies
•    Assessing change initiatives
•    Quantifying effects on stakeholders and participants

Who should take the Cost Benefit Analysis Exam?
•    Project management, Costing, Finance and Accounting professionals
•    Business owners
•    Entrepreneurs
•    Project management, Costing, Finance and Accounting managers and senior executives
•    Project management, Costing, Finance and Accounting consultants
•    Any professional with skills and knowledge on Cost Benefit Analysis
•    Anyone interested in Cost Benefit Analysis
•    Students

Knowledge and Skills required for the Cost Benefit Analysis

Specific skills are needed to excel in career of cost benefit analysis which includes analytical bent of mind and quick learning skills.

Cost Benefit Analysis Practice Exam Objectives

Cost Benefit Analysis exam focuses on assessing your skills and knowledge in concepts and application of Cost Benefit Analysis

Cost Benefit Analysis Practice Exam Pre-requisite

There are no prerequisites for the Cost Benefit Analysis exam.

Cost Benefit Analysis Certification Course Outline
1. Costs
2. Estimating costs and benefits
3. Cost Benefit Analysis Basics
4. Preparing a Cost Benefit Analysis
5. Conducting a Cost Benefit Analysis
6. Understanding Cost Benefit Analysis

Exam Format and Information
Certification name – Cost Benefit Analysis Certification
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees - INR 1199