Comparing cost of 2 studies and choosing the one which is economically superior to others is done by: March 2005

Ans. B: Cost benefit Cost-benefit analysis is a management technique which compares the economic benefit of a programme with its cost. The benefits are expressed in cost of that programme. The benefits are expressed in monetary terms to determine whether a given programme is economically sound, and to select the best out of several alternate programmes. Cost accounting establishes budget and actual cost of operations, processes, depaments or product and the analysis of variances, profitability or social use of funds. Managers use cost accounting to suppo decision-making to cut a company's costs and improve profitability. Costs are measured in units of nominal currency by convention. Cost accounting can be viewed as translating the supply chain (the series of events in the production process that, in conce, result in a product) into financial values.