Question:
In which of the following methods of management is the benefit measured in natural units?
In which of the following methods of management is the benefit measured in natural units?
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Which evaluation keeps outcomes in clinical units like life-years gained rather than rupees?
Updated On: Jun 23, 2026
- Program budgeting system
- Network analysis
- Cost-effective analysis
- Cost-benefit analysis
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The Correct Option is C
Solution and Explanation
Step 1: The key phrase is benefit measured in natural units. The two economic-evaluation methods to compare are cost-effective analysis (CEA) and cost-benefit analysis (CBA).
Step 2: In cost-effective analysis, costs are in money but benefits or outcomes are in natural (clinical) units, such as life-years gained, cases prevented, or deaths averted. The most comprehensive CEA indicator is the Quality-Adjusted Life Year (QALY).
Step 3: In cost-benefit analysis, both costs and benefits are converted into money, not natural units, so option d is wrong.
Why not a and b: Program budgeting and network analysis are planning and scheduling tools, not outcome-valuation methods.
Ref: Park's PSM, 24th ed., Page 908.
Step 2: In cost-effective analysis, costs are in money but benefits or outcomes are in natural (clinical) units, such as life-years gained, cases prevented, or deaths averted. The most comprehensive CEA indicator is the Quality-Adjusted Life Year (QALY).
Step 3: In cost-benefit analysis, both costs and benefits are converted into money, not natural units, so option d is wrong.
Why not a and b: Program budgeting and network analysis are planning and scheduling tools, not outcome-valuation methods.
Ref: Park's PSM, 24th ed., Page 908.
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