Which technique is used to compare the benefits and costs of a project to decide whether to proceed?

• A. Earned Value Analysis.
• B. SWOT Analysis.
• C. Risk Assessment.
• D. Cost-Benefit Analysis.

Answer: (D)

Cost-Benefit Analysis is the method used to compare the expected benefits of a project to its expected costs in order to decide whether to proceed. It involves listing all anticipated costs and all anticipated benefits, assigning monetary values where possible, and calculating the net benefit (benefits minus costs). If the net benefit is positive, the project is financially attractive and typically justified to move forward; if negative, it suggests not proceeding or reworking the proposal. This approach helps decision-makers compare different options and make a go/no-go decision based on the overall value. Earned Value Analysis tracks schedule and cost performance against the plan, not the overall value proposition. SWOT Analysis assesses strengths, weaknesses, opportunities, and threats rather than a monetized trade-off. Risk Assessment identifies potential uncertainties and their impacts, not a direct benefit-cost comparison.