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GlossaryApp

Cost-Benefit Analysis

Cost-Benefit Analysis (CBA) is a financial assessment tool used by product managers to evaluate the potential costs and benefits associated with a new product feature or project. This analysis helps in making informed decisions by comparing the expected costs of implementing a feature against the anticipated benefits.

Example

Before launching its new Smart Compose feature, Gmail conducted a cost-benefit analysis to determine whether the benefits of reducing email composition time for users outweighed the development and maintenance costs. The positive outcome of this analysis led to the feature's development and successful implementation.