. Cost-effectiveness analysis a. reports the incremental cost of improving an outcome. b. reports the value of improved outcomes divided by the cost of those outcomes. c. focuses only on situations in which costs have been reduced. d. All of the above

The correct answer is letter "A": reports the incremental cost of improving an outcome.

Explanation:

Cost-Effectiveness Analysis (CEA) compares relative costs and the effects of taking different strategies. CEA is mostly used in healthcare in an attempt of measuring the value of different healthcare effects. The CEA is expressed as the Incremental Cost-Effectiveness Ratio (ICEA) which represents the cost-effectiveness of a healthcare intervention.

The correct answer is a. reports the incremental cost of improving an outcome.

Explanation:

Cost effective analysis simply measures the effectiveness of the cost incurred to the organization and it's value addition. It is an important measure that must be considered when it comes to deciding which processes and costs have to incurred and which processes has to be stoped.

Moreover, this analysis enables us to identify projects and programmes with high economic potential and feasibility.

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