COMPARATIVE COST

ANALYSIS

PRESENTED BY
SASEELA SIVASUBRAMANIAM
FGS/MA/PA/2009/42
 Regional Planning

Regional planning is a specific type of planning,

based on a specific planning structure , for
inducing public action aimed at societal well
being.
 Procedural Techniques

The techniques used by the regional planner in

selecting the plan for a region. This may include
 Comparative cost analysis

 Threshold analysis

 Cost benefit analysis

 Goal achievement matrix.

 Comparative Cost Analysis

Comparative cost analysis is the most common

practical means of making an informed choice among
alternatives. This measure differential cost of various
alternative strategies.
 Principles of Comparative Cost
Analysis
 There must Be a common Unit of Measurement

 This valuation should represent Consumers or Producers

Valuations as revealed by Their Actual Behavior.

 This analysis should involve with versus without comparison.

 This Analysis Involves a particular study area

 Advantages of Comparative
Cost Analysis
Compares costs using equal terms

Provides a clear indication of net cost of a specific area or

regulation, helping justify decisions at various levels

Simplifies complex concepts and processes

Accepted by society more readily than other economic methods

Can be carried out at many levels (i.e., local, regional, national,

international)
By putting a monetary value on the viability of a initiative,
a cost/benefit analysis can move to a point where a decision
can be made.
Many aspects of a project or initiative have to be considered
when undertaking a comparative cost analysis. As
awareness of these various aspects increases, new issues
may be raised. Roles and responsibilities may also begin to
be allocated.
Expensive mistakes may be prevented as unexpected costs
are brought to light.
A robust comparative cost analysis can make an excellent
case for a project, and thus assist in getting a favorable
decision.
 Disadvantages of Comparative
Cost Analysis
Potential inaccuracies in identifying and

quantifying costs.
Increased subjectivity for intangible costs.

Inaccurate calculations of Present Value

This analysis might turn in to a project budget

Can be difficult to determine accurately the discount
rate of future costs and benefits, as well as indirect
impacts.
Can be a time-consuming and expensive process.

Does not always consider the source of the costs and

needs to consider factors such as environmental

justice and indirect impacts.
Does not usually consider questions of environmental
justice and how costs are distributed across different
groups.
 CONCLUSION
Comparative Cost Analysis is a powerful tool to

assess project initiatives or activities and to take

decisions.
The process involves monetary value of initial and

ongoing expenses. In regional planning, this plays

a important role to plan evaluation process.
THANK YOU