Cost analysis is a method used to evaluate the economic efficiency of a business or project by comparing the costs involved with the benefits or outcomes achieved. This analysis allows businesses to make informed decisions about resource allocation, pricing strategies, and overall financial sustainability. Cost analysis can help businesses identify areas of inefficiency, optimize processes, and maximize profits. It involves identifying and categorizing all costs associated with a particular project, process, or product, and then analyzing these costs in relation to the benefits or outcomes generated. Ultimately, cost analysis aims to provide businesses with a comprehensive understanding of the financial implications of their decisions and investments.