Definition
Benefit cost ratio is the financial metric comparing the benefits of a project to its total costs. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
Two cofounders disagree until they define Benefit cost ratio. Once they agree it means “Financial metric comparing the benefits of a project to its total costs”, the argument becomes a decision.
Common mistake
Using Benefit cost ratio as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Base salary
Fixed amount of compensation paid to employees before bonuses or benefits.
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Benchmark
Standard or reference point used to measure and compare performance.
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Bid-ask spread
Difference between the highest price a buyer will pay and lowest price a seller will accept.
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Bill of lading
Legal document issued by a carrier acknowledging receipt of goods for shipment.
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