This when a program or a product is analysed in order to be aware of the cost  in terms of finances and dedicated resources, compared to the benefit it brings in for the organisation. A cost benefit analysis predicts the potential outcome on a particular action or situation in order to subtract the cost on the action taken. 

It is important for organisations to carry out a cost benefit analysis in order to have a better standing in terms of their finances in the near future; it is a good practice to have because it will help the organisation from predicting any potential financial mistakes that could cause the organisation to go bankrupt.