What is the cost analysis?

, also known as CUA, is the analysis of costs and usefulness the type of evaluation process, which is often used in deciding to purchase goods and services. The basic idea of ​​this type of economic analysis is to consider purchasing costs in terms of benefits or usefulness that are derived from this purchase for a specified period of time. This general concept is well reflected in a number of different settings, from the purchase of a new piece of furniture to the determination of the benefits associated with performing a particular type of surgery.

One of the simplest ways to understand the cost analysis process is to consider buying a new mattress. The aim is to decide whether the benefits or a tool that is derived from this purchase will be sufficient to justify the costs. Assuming that the individual who sleeps on the mattress mattress mattress, the usefulness of sleep healthy every night for the next few years easily causes purchase to cost.

In the Health Economics, the role of cost analysis and cost analysis often has to do with the advantage of or usefulness, which is achieved by using specific methods to improve the quality of life for the patient, prolong the life of this patient or a combination of both. This is sometimes referred to as the evaluation of health technologies. The aim is to find out whether the cost of undergoing costly surgery will bring sufficient benefits for the patient for the time of acceptable time. Assuming the procedure has been reduced by the patient at present, and has been allowing a relatively normal life for several years, it is likely that the procedure will be considered an experience. The procedure should be a very unlikely result of prolonging the patient's life life or to increase the chances of recovery, the results of the cost analysis and analysis suggest that costs do not bring sufficient benefits to be considered sufficient and instead other less expensive treatment.

It is important to realize that the cost and usefulness analysis is somewhat similar to the cost and benefits, because both approaches are trying to find out if there is a sufficient return generated by the action to make this action useful. The cost and benefits analysis tend to focus more on the monetary value that is achieved, while the cost and usefulness analysis is somewhat wider in terms of society benefits and often includes space for considerable subjectivity. What one person perceives to represent a fair amount of benefits or usefulness of costs may be unacceptable for others.