Evaluation Methods:
A cost/benefit analysis compares the estimated costs and benefits of a program or components of a program. It seeks to answer the question, “Is this program worth its cost?” or “Which of the program components has the highest benefit/cost ratio?” All benefits and costs are converted into common monetary terms, and if this is not possible by direct means, are indirectly estimated by using proxy measures.
Cost effectiveness analysis is similar to cost/benefit analysis but there is no requirement to transfer benefits into common monetary units. It measures the extent to which a program or project or a component thereof produces equal or better results than competitors for the same cost (time, effort, and resources). Alternatively, it measures the extent to which a program, project, or component thereof produces the same results as competitors but at a lesser cost.