American Institute of Certified Planners (AICP) Practice Exam

Cost-Effectiveness Analysis is the appropriate method for assessing the cost-effectiveness of varying projects that share similar objectives. This analysis focuses specifically on the relationship between the costs incurred by different projects and the outcomes they produce. It allows planners to compare alternatives based on their costs per unit of effect, such as cost per life saved, cost per improvement in health outcomes, or cost per unit of environmental benefit.

This method is particularly useful when the projects aim for similar goals but may achieve those goals through different approaches or interventions. By understanding which project provides the best outcome relative to its cost, planners can make informed decisions about resource allocation and investment.

Cost-Benefit Analysis, while also concerned with financial aspects, evaluates projects by converting all benefits and costs into monetary terms, making it less suitable for comparing projects solely on defined objectives without quantifiable monetary values. The Strategic Planning Framework provides guidance on broader strategic objectives and directions, but does not specifically focus on cost-effectiveness. The Program Evaluation and Review Technique is a project management tool that helps to analyze and represent the tasks involved in a project but does not address cost-effectiveness directly. Thus, Cost-Effectiveness Analysis stands out as the most appropriate methodology in this context.