Definitions for "BENEFIT-COST RATIO"
An economic indicator of the efficiency of a proposed project, computed by dividing benefits by costs; usually, both the benefits and the costs are discounted, so that the ratio reflects efficiency in terms of the present value of future benefits and costs.
An economic indicator of efficiency, computed by dividing benefits by costs. Usually, both the benefits and the costs are discounted so that the ratio reflects efficiency in terms of the present value of future benefits and costs. Benefits for projects should exceed costs or the ratio should be greater than 1.0.
The ratio of the value of a measure's savings to its cost.