Using cost-benefit considerations to evaluate textbook costs: A case study

The cost-benefit approach (CBA) generally evaluates whether expenditures (costs) are worthwhile relative to their returns (benefits) (Harlow and Windsor 1988; Watkins 2008). Equal alternatives have the same relative benefit/cost ratio; thus, a higher cost alternative will have the same benefit/cost ratio as a lower cost alternative if its benefit is correspondingly higher than the benefit of the lower cost alternative (c.f., Hold and Elliott 2002). The purpose of this study is to demonstrate how CBA can be used to assess the most cost-effective business school major. We present a case study in which we apply CBA to evaluate textbook costs across the typical business majors (i.e., Accounting, Finance, Information Systems, International Business, Management and Marketing). We discuss how the CBA findings can inform public policy and individual decisions.