Utility is a term used in economics, which denotes the subjective feeling of satisfaction resulting from the consumption of goods. Any rational consumer or customer seeks to maximize their utility and on the other hand, minimize their expenses related to the utility.
In management, the term utility is closely related to the term benefit that is used for declaration of utility rate and its related costs. The utility is evaluated by an entity (user, organization or business) that must evaluate it to their needs and to the costs incurred for its achievement. To assess the benefits or utility rate, different methods of impact analyses can be used.
- CBA (Cost-Benefit Analysis)
- CEA (Cost Efectiveness Analysis)
- CIA (Cost-of-Illness Analysis)
- CMA (Cost Minimization Analysis)
- CUA (Cost Utility Analysis)