Discuss the Utilization of Cost Analysis in Evaluation

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The Answer is Cost analysis is, in itself, an evaluation method. However, when we think about evaluations, we often think of those that assess the extent to which a program achieves its results during and after the program is complete, not before. After all, evaluations exist because of two factors, "first, the fact that there is not enough money to do all the things that need doing; and second, the realization that even if there were enough money, it takes more than money to solve complex human and social problems." These two factors are the foundation for cost analysis and evaluations, so when we combine evaluations and cost analysis we have evidence and information about not only the effectiveness of the program as well as whether it was also cost-effective, or worth the resources invested in it.
During an evaluation, we ask the organization(s) to describe its strategy for addressing the issue at hand in terms of a "theory of change." In other words, we ask them to describe how and why they expect the program to achieve the intended outcomes or benefits. In doing so, we identify the implicit and explicit assumptions behind the program or initiative (program theory or theory of change), quantify the resources that the program or initiative needs (inputs), identify the specific actions that will be implemented (activities), identify the measures that would be used to track the activities (outputs), and identify the benefits (outcomes). Using this information, we are able to create a logic model to provide guidance during both the evaluation (inputs, activities, outputs, and outcomes) and cost analysis. This information allows us to link the inputs, activities, and outputs with the costs of the program and the outcomes with its benefits.
Logic models and cost analysis are stronger when performed together, and neither carries much weight without the other. That is, the cost of a program only means something when we know whether the program is effective, and the effectiveness of a program means little when organizations cannot afford to implement it. By using the two in support of each other, a case can be made that the program works and is worth it, or that changes need to be made to improve its effectiveness or cost.

Discuss the Utilization of Cost Analysis in Evaluation

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