“Direct costs and benefits may be easy to determine. Indirect costs and benefits, however, are another matter,” (Cochran 16). Cost-benefit analysis are not perfect and may contain errors no one could have predicted. Indirect costs and benefits are not always seen directly after a policy is implemented and may take years to notice. Nonetheless, because it was unpredictable the analysis most likely would not have taken it into account, the costs and benefits could fluctuate. This is why an evaluation is needed to see how the policy measures up to the analysis. “Policy evaluation involves collecting and analyzing information about the efficiency and effectiveness of policies,” (Cochran 13). These evaluations would see if the policy was worthwhile and effective. Sometimes resources become limited and because the policy was implemented before its limitations, it could be cost effective. On the other hand, an improvement in technology which could make an entire process much more simple and effective could make a former policy worthless and a waste of money. Therefore, after such evaluations, “CBO typically updates its baseline budget projections at specific times each year to reflect legislative action, economic changes, and other developments,” (CBO). This shows offices take action to improve their cost-benefit analyses after the original is
“Direct costs and benefits may be easy to determine. Indirect costs and benefits, however, are another matter,” (Cochran 16). Cost-benefit analysis are not perfect and may contain errors no one could have predicted. Indirect costs and benefits are not always seen directly after a policy is implemented and may take years to notice. Nonetheless, because it was unpredictable the analysis most likely would not have taken it into account, the costs and benefits could fluctuate. This is why an evaluation is needed to see how the policy measures up to the analysis. “Policy evaluation involves collecting and analyzing information about the efficiency and effectiveness of policies,” (Cochran 13). These evaluations would see if the policy was worthwhile and effective. Sometimes resources become limited and because the policy was implemented before its limitations, it could be cost effective. On the other hand, an improvement in technology which could make an entire process much more simple and effective could make a former policy worthless and a waste of money. Therefore, after such evaluations, “CBO typically updates its baseline budget projections at specific times each year to reflect legislative action, economic changes, and other developments,” (CBO). This shows offices take action to improve their cost-benefit analyses after the original is