Cost/benefit model

Quantifiable costs plus quantifiable benefits adjusted for the risks equals value. An attempt to quantify every benefit and cost for inclusion in the financial analysis, even the so-called intangible or "soft" costs and benefits. The reason it is important to quantify everything possible is this: If no financial value is assigned to an agreed cost or benefit, that impact contributes exactly nothing to the financial analysis.

Contributed by: Offshoring Opportunities