Cost-effectiveness analysis defines itself as which of the following?

Cost-effectiveness analysis defines itself as which of the following?

• A. A type of evaluation research that compares program costs with actual program outcomes
• B. A technique to determine break-even points
• C. A decision process focusing only on costs
• D. A method to compare which program is most popular

Answer: (A)

The main idea is evaluating value by linking what a program costs to what it achieves. Cost-effectiveness analysis is a type of evaluation research that compares program costs with the outcomes the program produces, usually expressing value as cost per unit of outcome (for example, cost per life-year gained or per case prevented). This approach helps determine whether the investment yields meaningful effects compared with alternatives. It isn’t simply a break-even calculation, which looks only at when revenues equal costs and doesn’t consider the health or performance outcomes. It also isn’t a process that considers costs in isolation, since the value shown depends on the outcomes achieved. And it isn’t about popularity or popularity metrics, which don’t address efficiency or effectiveness.

The main idea is evaluating value by linking what a program costs to what it achieves. Cost-effectiveness analysis is a type of evaluation research that compares program costs with the outcomes the program produces, usually expressing value as cost per unit of outcome (for example, cost per life-year gained or per case prevented). This approach helps determine whether the investment yields meaningful effects compared with alternatives.

It isn’t simply a break-even calculation, which looks only at when revenues equal costs and doesn’t consider the health or performance outcomes. It also isn’t a process that considers costs in isolation, since the value shown depends on the outcomes achieved. And it isn’t about popularity or popularity metrics, which don’t address efficiency or effectiveness.