CUA (Cost Utility Analysis)

CUA (Cost Utility Analysis) is based on measuring the change in utility depending on the change in the unit cost.

CUA is one of the monocriterial evaluation methods of public expenditure. Inputs are in monetary units, the outputs are usually measured in non-monetary units. Changes in benefits are an evaluation criterion (measured as the degree of satisfaction) by using additional units of inputs.

Evaluation is carried out so that a scoring scale is defined to the utility - possible level of utility (e.g. excellent, satisfactory, good, insufficient) and utility growth rate or size is determined.

If it is difficult to express the utility, it is possible to define a generally defined goal and determine the percentage of its achievement (e.g. by observation, questioning, subsequent analysis). The best option is then the one which best meets the defined goal.

Use of the CUA method in practice: The method is suitable for projects where we are not able to quantify the benefits in monetary units.