Cost Benefit Analysis

Use this skill to run Cost Benefit Analysis as a practical consulting method, not as a generic framework explanation.

Method Notes

• Compare against a clear baseline.
• Include timing, confidence, opportunity cost, and downside case.

Required Inputs

Collect or infer these inputs before execution:

• option or investment
• benefit estimates
• cost estimates
• time horizon
• risk assumptions

If an input is missing, do not block automatically. Mark it as missing, state the assumption used, and add a validation action.

When Not To Use

Do not use when material costs and benefits cannot be compared over a common time horizon. Treat non-negotiable legal, safety, or policy constraints as gates rather than averaging them into a financial total.

Adjacent Methods

• break-even-analysis: calculate the threshold volume, price, or time.
• decision-matrix: compare options across non-financial criteria as well as economics.

Step-by-Step Execution

Output Template

### 1. Decision Baseline
Decision:
Baseline / do-nothing case:
Time horizon:
Discount / timing assumption:

### 2. Benefits And Costs
| Item | Type | Amount / range | Timing | Evidence | Confidence |
|---|---|---|---|---|---|
|  |  |  |  |  |  |

### 3. Scenarios
| Scenario | Net value | Key assumption | Downside |
|---|---|---|---|
|  |  |  |  |

### 4. Recommendation And Threshold
Recommendation:
Break condition:
Owner:
Validation action:

### Evidence And Next Decision
- Confirmed facts:
- Assumptions:
- Missing evidence:
- Next action, owner, and timing:
- Expected signal and decision threshold:

Quality Gate

• Produce the method-specific outputs for Decision Baseline, Benefits And Costs, Scenarios; do not substitute a generic framework summary.
• Tie every material score, causal claim, or stakeholder judgment to evidence or label it as an assumption.
• Include at least one disconfirming check, sensitivity, alternative explanation, or failure condition appropriate to the method.
• Convert the result into a named action or decision with an owner or stakeholder, timing, and observable signal.
• State missing inputs and the smallest validation action instead of inventing precision.
• Keep wording professional and plain enough that a smart non-specialist can use the output directly.