Cost analysis is the process of evaluating the costs associated with a project, product, or service to determine its financial viability. This involves identifying all expenses, including direct costs like materials and labor, as well as indirect costs such as overhead. By understanding these costs, businesses can make informed decisions about pricing, budgeting, and resource allocation. Additionally, cost analysis helps organizations identify areas for improvement and potential savings. It can be used in various fields, including manufacturing, healthcare, and construction, to assess profitability and efficiency. Ultimately, effective cost analysis supports strategic planning and enhances overall financial performance.