This paper reveals cost allocation, cost effectiveness analysis, cost benefit analysis, theoretical view of Cost Effectiveness Analysis and cost Benefit Analysis. | Significance of cost effectiveness analysis and cost benefit analysis in infrastructure development company International Journal of Management IJM Volume 8 Issue 2 March April 2017 245 Article ID IJM_08_02_026 Available online at http ijm JType IJM amp VType 8 amp IType 2 Journal Impact Factor 2016 Calculated by GISI ISSN Print 0976-6502 and ISSN Online 0976-6510 IAEME Publication SIGNIFICANCE OF COST EFFECTIVENESS ANALYSIS AND COST BENEFIT ANALYSIS IN INFRASTRUCTURE DEVELOPMENT COMPANY Dr. . Gopala Sarma Professor amp HOD Department of MBA Institute of Aeronautical Engineering Dundigal Hyderabad India ABSTRACT Most often cost-effectiveness and cost-benefit studies are conducted at a level that involves more than just a local program such as an individual State Strengthening project . Sometimes they also involve following up over a long period of time to look at the long-term impact of interventions. They are often used by policy analysts and legislators to make broad policy decisions so they might look at a large federal program or compare several smaller pilot programs that take different approaches to solving the same social problem. People often use the terms interchangeably but there are important differences between them. Cost - Effectiveness analysis assumes that a certain benefit or outcome is desired and that there are several alternative ways to achieve it. The basic question asked is quot Which of these alternatives is the cheapest or most efficient way to get this benefit quot By definition cost-effectiveness analysis is comparative while cost-benefit analysis usually considers only one program at a time. Another important difference is that while cost-benefit analysis always compares the monetary costs and benefits of a program cost-effectiveness studies often compare programs on the basis of some other common scale for measuring outcomes eg. number of students who graduate from high .
