Question

What is the difference between cost-effectiveness and efficiency? give examples of outcomes that are efficient but not cost effective, and outcomes that are cost-effective but not efficient.

Answer 1

Answer : Difference between cost effectiveness vs cost efficiency as follows :

• Cost effective means that the something that is productivity than the cost has been incurred where as cost efficiently means that how cost has been utilised in a systematic form and how resources should be utilized in a systematically and in proper manner.
• Cost effective means that how feasible the relevant the project where as cost efficient means how input resources should be utilised.
• Cost effective means resources should be flexible and utilised in a proper manner where as cost efficiency means that input rice has been lower down in systematic manner

Example :Cost effectiveness means that resource should be available in logical manner and fasilibity of the project is know where as in case of cost efficiency means that input price hasbeen lower as overall reduction in the price of the product in systematic manner.