- The evaluation of a proposed activity by determining the value of the anticipated benefits likely to accrue compared to the costs that will be incurred. If the benefits exceed the costs the activity is financially attractive, although there may be many non-financial factors to take into account before making a final decision. The benefits, some of which may be of a qualitative nature, may be enjoyed by some groups and the costs borne by others, which may make the analysis more complex.
Accounting dictionary. 2014.
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