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September 6, 2022

A Cost-Effective Analyses (CEA) is an example of one of the established processes used by finance managers in healthcare

A Cost-Effective Analyses (CEA) is an example of one of the established processes used by finance managers in healthcare. By using a set of tools related to different types of program costs, managers can evaluate and/or compare programs so that informed choices can be made. CEAs assist managers in determining which program will provide quality outcomes when compared to the costs the organization would incur. Although this sounds like a simple process, there are many variables to consider.

Step 1: Research and discuss the following terms in a 1- to 2-page document:

Opportunity cost

Initial costs

Continuing costs

Induced costs

Averted costs

Fixed costs

Variable costs

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