What is meant by cost/benefit analysis? Illustrate its relevance to the System Analyst during systems development life cycled.

CPA-Quantitative-Analysis-Section-4 BLOCK RELEASE

Cost/benefit and its relevance
Cost benefit analysis refers to the economic feasibility a evaluation of a system to determine whether it is a good investment or not. It seeks to establish whether the benefits that are to be reaped from the system outweigh the costs incurred to implement it.

The relevance of cost benefit analysis to the system analyst during system development arise due t the fact that: –
1. The analyst carries out a methodological study at the current system so that a system that suits user requirements and which is feasible is obtained. Thus, cost benefit analysis is inevitable.
2. The system analyst specifies the input output and storage files as well as the processing hardware and software. Thus, he must be conscious about the costs of such facilities and the benefits to be accrued from each of them.
3. The analyst is also involved in the post in the post implementation review stage and as such he is able to know and appreciate whether the system is working in conformity with desired costs and benefits.

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