Cost/benefit Analysis Is a Useful Tool in Policy Analysis

question 62

Multiple Choice

Cost/benefit analysis is a useful tool in policy analysis. It can be used to ______.

• A) forecast the likely impact of various possible policy alternatives
• B) provide information about the scope and nature of a problem
• C) analyze the efficiency of various possible policy alternatives
• D) judge the effectiveness of an implemented policy

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Definitions:

Cost Center

A department or segment of a business to which costs can be allocated but does not directly generate revenue.

Profit Center

A segment or department within an organization that is directly responsible for generating profit, measured by its performance.

Selling Division

A segment of a company focused on the sales and distribution of products or services.

Opportunity Cost

The value of the best alternative that is forgone when a particular decision is made, representing the benefits that could have been received from that alternative.