What is the example of cost of basic needs method?

The Cost of Basic Needs (CBN) method is commonly used to estimate the poverty line by calculating the cost of a basic basket of goods and services required for a minimum standard of living. For example, this might include expenditures on food, clothing, shelter, healthcare, and education necessary for a household's survival and well-being. By determining the total costs of these essentials, policymakers can identify poverty thresholds and assess the economic conditions of different populations. This method helps in understanding the minimum income required to meet basic human needs in a specific context.