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Glossary > Marketing >Cost Efficiency
Cost Efficiency
The usefulness of specified inputs (cost) to produce specified outputs (benefits). In measuring cost efficiency, some outputs (such as environmental, economic, or social impact) are not assigned monetary values, but are achieved at specified levels in a least cost manner. Certain outputs not highly desired may be gotten at low costs. "Effective" emphasizes achievement of objectives. Cost efficiency is usually measured using present net value, although use of benefit-cost ratios and rates-of-return may be appropriate.
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