Comparison of B/C and Cost Effectiveness
Benefit-Cost
Cost-effectiveness
Geared to
Economic efficiency
Technological efficiency
Measurement units
$ dollars
Various measures
Variable components
Benefits & Costs
a) Minimize Costs, with benefits fixed
b) Maximize benefits with costs fixed
Main question
Whether the program is justified
How resources
should be used in a program
Scope
Global, comprehensive
Narrow, focused
Usual application
Capital projects
Ongoing, operating programs
Time frame
Long-term
Short-term