Question:medium
In which of the following methods of management is the benefit measured in natural units?
In which of the following methods of management is the benefit measured in natural units?
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Which evaluation keeps outcomes in clinical units like life-years gained rather than rupees?
Updated On: Jun 23, 2026
- Program budgeting system
- Network analysis
- Cost-effective analysis
- Cost-benefit analysis
Show Solution
The Correct Option is C
Solution and Explanation
The deciding contrast is between cost-effectiveness and cost-benefit analysis, and the giveaway is how each one expresses benefit.
Cost-effectiveness analysis (CEA) keeps the cost side in money but leaves the benefit side in natural, clinical units: life-years gained, cases prevented, deaths averted. When those natural units are weighted for quality of life, you get the QALY, the most complete CEA measure.
Cost-benefit analysis (CBA) is different in one crucial way: it forces the benefit into monetary terms so it can be subtracted from cost, so it does not use natural units. That eliminates option $d$.
Program budgeting ($a$) and network analysis ($b$) are not outcome-valuation methods at all, they are planning and scheduling tools, so they do not fit.
The method that measures benefit in natural units is cost-effective analysis, option $c$.
Ref: Park's PSM, 24th ed., p. 908.
Cost-effectiveness analysis (CEA) keeps the cost side in money but leaves the benefit side in natural, clinical units: life-years gained, cases prevented, deaths averted. When those natural units are weighted for quality of life, you get the QALY, the most complete CEA measure.
Cost-benefit analysis (CBA) is different in one crucial way: it forces the benefit into monetary terms so it can be subtracted from cost, so it does not use natural units. That eliminates option $d$.
Program budgeting ($a$) and network analysis ($b$) are not outcome-valuation methods at all, they are planning and scheduling tools, so they do not fit.
The method that measures benefit in natural units is cost-effective analysis, option $c$.
Ref: Park's PSM, 24th ed., p. 908.
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