General Studies · Financial Management

Identify the correct distinguishing features between Cost-Benefit Analysis (CBA) and Cost-Effectiveness Analysis (CEA): 1. CBA compares economic viability by quantifying and monetizing all relevant costs and benefits. 2. CEA is primarily concerned with identifying the most cost-efficient means of achieving a specific, common outcome, regardless of the broader societal impact. 3. CBA always yields a benefit-cost ratio less than 1 to indicate economic feasibility. 4. CEA is particularly useful in sectors like public policy and infrastructure development, while CBA is confined to resource optimization in budget-constrained social services. 5. CBA extends beyond mere financial analysis to encompass broader societal impacts, such as enhanced social welfare.