what are the costs and benefits of doing a cost benefit analysis 
the process of doing a cost benefit analysis itself has its own inherent costs and benefits the costs involve the time needed to carefully understand and estimate all of the potential rewards and costs this may also involve money paid to an analyst or consultant to carry out the work one other potential downside is that various estimates and forecasts are required to build the cost benefit analysis and these assumptions may prove to be wrong or even biased the benefits of a cost benefit analysis if done correctly and with accurate assumptions are to provide a good guide for decision making that can be standardized and quantified if the cost benefit analysis of doing a cost benefit analysis is positive you should do it the bottom linesome complex problems require deeper analysis and a company can use cost benefit analysis when it isn t abundantly clear whether or not to pursue an undertaking by determining the expenses and identifying what will be favorable a company can simplify decision making by synthesizing a cost benefit analysis however it s crucial to be aware of the limitations and challenges of cba although it provides a structured method for decision making its accuracy relies heavily on the precision of forecasts and assumptions incorrect estimates of future costs or benefits can result in faulty conclusions despite these challenges when performed with careful consideration and accurate data cba is a valuable tool for strategic planning and resource allocation 