BUSM 2005 Cost Benefit Analysis

Credit Points 10

Legacy Code 200924

Coordinator Neil Perry Opens in new window

Description Students will learn and apply Cost Benefit Analysis, the most commonly used economic tool in business, consultancy and government organisations. The unit is a core unit in the Economics major but is open to all students who have a basic understanding of economics and a desire to improve their analytical skills and employability. At the completion of the unit, students will be able to explain the economic foundations of cost-benefit analysis and they will have experience with analysing, critically evaluating and developing a cost-benefit analysis for a specific proposal. Students will also consider risk analysis and cost-effectiveness analysis.

School Business

Student Contribution Band HECS Band 4 10cp

Check your HECS Band contribution amount via the Fees page.

Level Undergraduate Level 2 subject

Pre-requisite(s) BUSM 1006 OR
ECON 1011 OR
MKTG 1005

Assumed Knowledge

Basic understanding of economics.

Learning Outcomes

On successful completion of this subject, students should be able to:
  1. Explain the welfare economics foundation to cost-benefit analysis.
  2. Critically evaluate a cost-benefit analysis.
  3. Conduct a cost-benefit analysis.
  4. Distinguish between cost-benefit and cost-effectiveness analysis.
  5. Explain the role of uncertainty and risk when evaluating proposals.

Subject Content

1. Conceptual and microeconomic foundations to cost-benefit analysis.
2. Steps in a cost-benefit analysis.
3. Valuing social benefits.
4. Evaluating indirect effects.
5. Opportunity costs, market and shadow prices.
6. Valuing non-market goods.
7. Discounting and the decision criteria.
8. Uncertainty and risk analysis.
9. Applications.
10. Cost-effectiveness analysis.

Assessment

The following table summarises the standard assessment tasks for this subject. Please note this is a guide only. Assessment tasks are regularly updated, where there is a difference your Learning Guide takes precedence.

Item Length Percent Threshold Individual/Group Task
Professional task 1500 words 25 N Individual
Portfolio 2000 words 25 N Group
Final examination - Take home 2 hours 50 N Individual

Teaching Periods

2022 Semester 1

Online

Online

Subject Contact Neil Perry Opens in new window

Attendance Requirements 80% attendance rate is imposed in all core subjects’ due to the nature of class activities that are aligned with subject assessments.

View timetable Opens in new window