When should a benefit-cost analysis (BCA) be performed?

• A. Before beginning detailed work on the project
• B. After completing the project
• C. During implementation
• D. At project close

Answer: (A)

Benefit-cost analysis estimates the value of a project by weighing expected benefits against expected costs to help decide if pursuing the initiative makes sense. Because this analysis informs whether to commit resources, it should be done early in planning before detailed work begins, so you can screen options and choose those with favorable net benefits. Waiting until after the project is finished, during implementation, or at close means the decision to start has already been made and the analysis cannot influence that initial choice.