CBA stands for what?

• A. Cash Based Appraisal
• B. Comprehensive Benefit Assessment
• C. Current Budget Allocation
• D. Cost Benefit Analysis

Answer: (D)

This question tests your knowledge of a common acronym used in evaluating projects. CBA stands for Cost Benefit Analysis. It’s a systematic way to compare the costs and benefits of a proposal, usually turning outcomes into monetary terms so you can add them up. By discounting future costs and benefits to their present value, you get a clear net value or a benefit–cost ratio. If the benefits exceed the costs, the project is economically justified, helping managers decide whether to proceed or how to compare different options. In construction and procurement, this approach supports decisions by demonstrating value for money and prioritizing the options with the strongest economic case. The other phrases aren’t standard terms for CBA, as they describe different concepts and aren’t used to name this evaluation method.