The Effectiveness of Cost Benefit Analysis in Manufacturing Organizations: A Survey of Selected Manufacturing Organizations in Delta State

This study aims at examining the effectiveness of cost benefit analysis in manufacturing organization. A survey of selected manufacturing firms in Delta State was conducted. The study spotlighted the usefulness of cost benefit analysis, objectives, features and disadvantages of cost benefit analysis. Structured questionnaire was employed in the course of gathering relevant data for the study and administered on 100 employees of five (5) manufacturing firms in Delta State. The results indicated among others that there is significant relationship between the effectiveness of cost benefit analysis with ascertaining the financial implications of projects and knowing about the social benefit derivable from a project. The study therefore recommended among others that cost benefit analysis valuations should represent consumers or producers valuations as revealed by their actual behaviour, double courting of benefits or costs must be avoided and a common unit of measure should exist and a host of others for the effectiveness of cost benefit analysis in organizations.