Deck 10: Cost-Effectiveness and Cost Analysis

Question 1

The program that provides the best results for the most money is the most efficient.

Answer 1

False

Question 2

When computing costs as part of a cost-effectiveness study, which of the following is a category of costs to consider?

A)personnel including salary and fringe benefits
B)facilities costs including rent and maintenance
C)equipment required by the program
D)all of the above
E)none of the above

Answer 2

D

Question 3

In a cost-benefit analysis, effort is made to measure which of the following?

A)costs and benefits in monetary units
B)costs to run the program and revenues paid by the consumers
C)benefits to program consumers plus salaries of the providers
D)costs in monetary units and results qualitatively

Answer 3

A

Question 4

In cost-effectiveness studies, when the results show that a program costs the least to run, it should be considered the most effective for clients.

Question 5

The difficulty of assigning monetary value to some of the benefits derived from social services programs is illustrated by which of the following?

A)computing the cost of a therapist's time spent with each client
B)determining the value of reduced stress on a family when a child is returned from out-of-home care
C)determining the money saved when a previously incarcerated person does not commit another crime due to becoming and staying sober
D)all of the above are examples
E)multiple time series

Question 6

Cost-effectiveness studies can help administrators make decisions about which of the following?

A)allocation of scarce resources in programs
B)use of staff time in programs
C)program successes compared to program costs
D)all of the above
E)none of the above

Question 7

Measuring the efficiency of a program refers to all of the following EXCEPT:

A)determining if the program outcomes are worth the dollars invested
B)determining if the program is cost-effective
C)conducting a benefit-cost analysis
D)determining if the program is based on empirical research

Question 8

In a cost-effectiveness study, what is the sensitivity analysis?

A)the first step in conducting the study
B)determining if client/client groups will be upset by the findings
C)determining if funders will want to pull funding due to the results
D)testing the recommendations based on the cost-effectiveness data
E)none of the above

Question 9

The societal perspective of a cost-effectiveness analysis takes into account all costs and effects of a program, not just the perspective of only one group.

Question 10

Which is true about the literature regarding cost-benefit analysis of human services programs?

A)there are no articles in the literature showing the results of cost-benefit analysis in human services
B)there are articles that say these studies are unethical in human services because you cannot put a monetary value on intangible benefits such as increase in self-esteem and increase in family functioning
C)there is a lack of consensus on how to define benefits and unit costs in social service programs
D)cost-benefit analysis in human services is really more an examination of cost-effectiveness because it is impossible to assign monetary value to outcomes

Question 11

When determining which treatment should be offered to a client, the choice should be the treatment that will yield the most benefit while also ________________________________.

A)being preferred by former clients
B)requiring the lowest cost to provide
C)being preferred by the most skilled clinicians
D)all of the above
E)none of the above

Question 12

How is the cost-effectiveness ratio for a program computed?

A)divide the operating expenses by the client revenues
B)run a t-test to determine significant differences between costs across years of operation
C)divide the total cost of the program by the effectiveness outcome indicator
D)compute the amount saved by providing services compared to societal costs if services were not available
E)none of the above, cost-effectiveness is a subjective measure when studying human services programs

Question 13

A cost-benefit analysis can help an administrator determine if the money spent on a program is related to its outcomes.

Question 14

In cost-benefit analysis, the evaluator must assign a monetary value to the benefits of a social service program.

Question 15

Which of the following is the first step in conducting a cost-effectiveness study?

A)developing research questions and a hypothesis
B)examining the program budget
C)gaining an understanding of the agency mission and outcome indicators
D)collecting data by surveying clients about their experience in the program