DEFINITION of 'Benefit Cost Ratio  BCR'
A ratio attempting to identify the relationship between the cost and benefits of a proposed project. Benefit cost ratios are most often used in corporate finance to detail the relationship between possible benefits and costs, both quantitative and qualitative, of undertaking new projects or replacing old ones.
BREAKING DOWN 'Benefit Cost Ratio  BCR'
As mentioned, the ratio is used to measure both quantitative and qualitative factors, since sometimes benefits and costs cannot be measured exclusively in financial terms. In cases where at all possible however, qualitative factors should be translated to quantitative terms in order for the results to be easily understandable and tangible.

Profitability Index Rule
A regulation for evaluating whether to proceed with a project ... 
Shadowing
The process of creating values for variables that don't rely ... 
Present Value  PV
The current worth of a future sum of money or stream of cash ... 
Future Value  FV
The value of an asset or cash at a specified date in the future ... 
Internal Rate Of Return  IRR
A metric used in capital budgeting measuring the profitability ... 
Net Present Value  NPV
Net Present Value (NPV) is the difference between the present ...

Fundamental Analysis
Ratio Analysis Tutorial
If you don't know how to evaluate a company's present performance and its possible future performance, you need to learn how to analyze ratios. 
Investing Basics
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Economics
What Happens in a MakeorBuy Decision?
A makeorbuy decision happens when a company must choose to either manufacture an item itself, or buy it premade from a supplier. 
Technical Indicators
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Find out which financial ratios are most useful when analyzing an investment bank, and why tracking capital efficiency is especially important. 
Fundamental Analysis
Understanding the Internal Rate of Return Rule
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Term
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Economics
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The benefits of a given situation or businessrelated action are summed and then the costs associated with taking that action are subtracted. 
Economics
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Fundamental Analysis
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Investing
Additional PaidIn Capital
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What is the formula for calculating weighted average cost of capital (WACC) in Excel?
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What is the difference between calledup share capital and paidup share capital?
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How does additional paid in capital affect retained earnings?
Both additional paidin capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >> 
What types of capital are not considered share capital?
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What is the difference between issued share capital and subscribed share capital?
The difference between subscribed share capital and issued share capital is the former relates to the amount of stock for ... Read Full Answer >> 
What is the formula for calculating working capital in Excel?
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