Project Selection Methods Key Terms - Benefit Cost Ratio

For Benefit Cost Ratio, it relates to the project cost and to determine what work should be done. In general,

• if the value is > 1, it means the benefits are greater than the cost.
• if the value is < style="font-weight: bold;">costs are greater than the benefits.
• if the value is = 1, it means the costs and benefits are the same.