Which evaluation converts both costs and benefits into monetary terms to determine net benefit?

• A. Cost-minimization analysis
• B. Cost-utility analysis
• C. Cost-benefit analysis
• D. Cost-consequence analysis

Answer: (C)

Converting both costs and benefits into monetary terms and calculating net benefit is the hallmark of cost-benefit analysis. In this approach, every relevant cost and every relevant benefit is given a monetary value, then total benefits minus total costs yields the net benefit. If the net benefit is positive, the option is considered worthwhile because the gains exceed the costs. You can also look at the benefit-cost ratio, where a ratio greater than one indicates a favorable outcome. This differs from other methods: cost-minimization analysis assumes identical outcomes and focuses only on which option costs less; cost-utility analysis and cost-effectiveness analysis translate outcomes into units like QALYs or other natural units rather than dollars; cost-consequence analysis presents costs alongside multiple outcomes without aggregating them into a single monetary figure.