Which process involves evaluating the benefits and costs of a project to make informed decisions?

The process that involves evaluating the benefits and costs of a project to make informed decisions is known as Cost/Benefit Analysis. This method is essential for decision-making as it quantifies the positive outcomes (benefits) against the potential negative outcomes (costs) of a project or investment. By systematically analyzing these factors, organizations are better equipped to determine whether the economic advantages of a project outweigh its disadvantages.

Cost/Benefit Analysis can be applied in various contexts, including public policy, business investments, and project management. It helps identify the most efficient allocation of resources and guides decision-makers toward actions that maximize overall gains. The use of this analysis promotes transparency and rational decision-making by providing measurable evidence for the anticipated economic impact of projects.

The other processes mentioned do not focus on this evaluation directly. Economies of Scale refer to cost advantages gained as production increases, Tariffs are taxes imposed on imported goods which affect pricing and trade, and Place Utility is a marketing concept about creating value by making products available at convenient locations. Each of these concepts plays its own role in economics but does not pertain specifically to the evaluation of project benefits versus costs.