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4 - AAU - Accounting and Financial Auditing

AAU 132 - Cost Benefit Analysis

Code Start Date Duration Venue
AAU 132 03 July 2023 5 Days Istanbul Registration Form Link
AAU 132 28 August 2023 5 Days Istanbul Registration Form Link
AAU 132 23 October 2023 5 Days Istanbul Registration Form Link
AAU 132 18 December 2023 5 Days Istanbul Registration Form Link
Please contact us for fees


Course Description

Whenever you need to make a business decision, invariably you have to weigh one choice against another. Sometimes, the choice is between Project A and Project B, and sometimes the choice is between Project A and doing nothing at all.

 A cost-benefit analysis is the simplest way of comparing your options to determine whether to go ahead with a project. The idea is to weigh up project costs against benefits and identify the action that will give you the most bang for your buck.

Course Objectives

  • What Is Cost-Benefit Analysis?
  • What Is the Relevance of Cost-Benefit Analysis for Business?
  • How Do You Perform a Cost-Benefit Analysis?
  • What is the problem?
  • What are the costs?
  • What are the benefits?
  • Compare the costs and benefits and make an informed decision.
  • The Role of Assumptions in Cost-Benefit Analysis

Who Should Attend?

  • Financial managers
  • Project Managers
  • Financial controllers
  • Finance department heads, chief financial officers
  • Accounting managers, senior finance officers, accountants
  • Finance staff and analysts 

Course Details/Schedule

Day 1

  • Introduction to cost-benefit analysis.
  • Aim of cost-benefit analysis.
  • Importance to policymakers and link to Impact Assessment.
  • Importance to regulated utilities and infrastructure investment.
  • Ex ante and ex post cost-benefit analysis.

Day 2

  • Defining the baseline.
  • Identifying costs and benefits.
  • Transfers and distributional impacts.
  • Using market prices to value impacts.
  • Taking account of inflation and relative price changes.
  • Discounting
  • How to discount future impacts
  • What discount rate to use

Day 3

  • How to deal with risk and uncertainty.
  • The importance of thinking about risk and uncertainty.
  • Scenario and sensitivity analysis.
  • Monte Carlo analysis.
  • Real options.

Day 4

  • Challenges in quantifying costs and benefits.
  • Methods of collecting data and analyzing impacts.
  • Stakeholder engagement.
  • Market research.
  • Behavioral experiments.
  • Statistical analysis.
  • Case studies

Day 5

  • Modelling.
  • Assessing the additionality of impacts.
  • Adjusting for optimism bias.
  • Why non-market impacts are important.
  • Techniques for valuing non-market impacts.
  • Using existing valuations.
  • Stated preference.
  • Revealed preference.