Benefits of cost benefit analysis of a programme are measured in terms of: September 2008, March 2013 (g)
**Core Concept**
Cost-benefit analysis is a method used to evaluate the advantages and disadvantages of a program or project by comparing its costs with its benefits. In healthcare, this analysis helps policymakers and administrators make informed decisions about resource allocation.
**Why the Correct Answer is Right**
The benefits of cost-benefit analysis are measured in terms of monetary values, which are quantifiable and comparable. This allows for a clear comparison of the costs and benefits of a program. The monetary benefits are typically expressed in terms of **incremental net benefits**, which represent the additional benefits gained from a program compared to the costs incurred. This approach enables decision-makers to determine whether the benefits of a program outweigh its costs.
**Why Each Wrong Option is Incorrect**
**Option A:** Non-monetary benefits, such as quality of life or patient satisfaction, are not typically measured in cost-benefit analysis.
**Option B:** Opportunity costs are related to cost-benefit analysis, but they represent the value of the next best alternative that is given up when a decision is made.
**Option C:** Break-even analysis is a related concept, but it focuses on the point at which the costs and benefits of a program are equal, rather than measuring the benefits in terms of monetary values.
**Clinical Pearl / High-Yield Fact**
When conducting cost-benefit analysis, it's essential to use a **discount rate** to account for the time value of money, as benefits and costs that occur in the future are worth less than those that occur in the present.
**Correct Answer: C. Break-even analysis.