Paraphrase Cost-based methods are useful in evaluating a potential information systems project in several ways such as determining the financial feasibility of a project. By estimating the costs involved in implementing the project, you can decide whether it is financially viable or not. Once the project is deemed feasible, cost-based methods can be used to create a budget. This includes costs for hardware, software, labor, training, and maintenance. Cost-based methods can be used to compare different alternatives. By estimating the costs of different options, you can choose the most cost-effective solution. Also help in risk assessment. By identifying potential cost overruns or underestimations, you can prepare for potential risks. Lastly, its crucial in calculating the ROI of a project. By comparing the estimated costs with the expected benefits, you can determine the potential return on investment.