Which type compares only costs because outcomes are assumed equivalent?

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

Answer: (B)

When two options have the same effectiveness, the decision rests solely on cost. This approach is cost-minimization analysis. Because the outcomes are assumed equivalent, there’s no difference to weigh in terms of effect, so the cheapest option wins. It’s important to only use this when you’re confident that the effectiveness truly matches; if there’s any doubt about outcomes, CMA can be misleading. Other methods bring outcomes into the decision in different ways: cost-benefit analysis monetizes effects to compare net benefits; cost-utility analysis uses quality-adjusted life years; cost-effectiveness analysis compares costs against specific natural units of effect; cost-consequence presents costs and multiple outcomes separately for judgment.