The definition of cost benefit is an analysis of the pros and cons of a given situation or course of action to determine how the downsides compare to the upsides.
An example of a cost benefit is weighing the risk of defaulting on a loan that you take out to grow your business against the potential that the business will be successful.
designating or of an analysis that evaluates the cost-effectiveness of a project or policy
- The renewed emphasis on cost-benefit analysis is especially welcome.
- When making a determination about whether you need renters insurance through Liberty Mutual or not, it is important to do a cost-benefit analysis.