American Institute of Certified Planners (AICP) Practice Exam

Which analysis focuses on a project's effectiveness regarding a single objective?

1. Critical Path Programming

2. Goals Achievement Matrix

3. Planning Programming Budget System (PPBS)

4. Cost-Effectiveness Analysis (CEA)

The correct answer is: Cost-Effectiveness Analysis (CEA)

Cost-Effectiveness Analysis (CEA) is a method used to determine the most efficient way to achieve a specific objective, especially when comparing the costs and outcomes of different projects or interventions. This analysis is ideally suited for evaluating projects against a singular focus, allowing planners to assess how effectively resources are being utilized to meet that one goal. In CEA, costs are measured in monetary terms, and effectiveness is gauged through the specific outcomes of interest, which provides a clear metric for evaluating the success of various alternatives in achieving the desired result. This targeted assessment enables decision-makers to determine which options provide the best return on investment for the objective at hand. Other options, while valuable in their contexts, do not focus solely on a single objective. For example, Critical Path Programming is used for project scheduling and management, which involves multiple tasks and objectives; the Goals Achievement Matrix is a tool for assessing multiple goals against various projects; and the Planning Programming Budget System (PPBS) integrates planning and budgeting processes to assess broader program effectiveness rather than focusing on a singular objective. Thus, CEA stands out as the most relevant methodology for evaluating effectiveness concerning one specific goal.