COST-EFFECTIVENESS: ESTIMATING SYSTEMS COSTS

Abstract : The discussion of concepts, principles, and the general approach toward the development of system cost estimates is intended primarily for users of estimates, rather than for cost analysts. An understanding of cost analysis can assist considerably in the use of cost estimates. Both the value and limitations of such estimates should be better understood for their proper application in cost-effectiveness analysis. Emphasis must be shifted toward an evaluation of the validity of the study itself and the analysis underlying it. Data, methods, and conclusions must be subjected to intelligent and critical review.