Extended cost is the process of figuring out how much was paid for more than one unit of a product that was acquired at the same price. This is a fundamental accounting method used to calculate total expenses for goods sold at retail prices as well as nearly any other type of acquisition, such as real estate or vehicles.What is an Extended Cost?It is the primary method of determining earnings for firms and is also used to declare business expenses on the federal income tax Schedule C form.

step 1

Note the amount spent for each item. Calculate and include this sum in the item cost if you had to pay shipping or delivery fees. Divide the $24 by 100 and add that sum to the $3 price, for instance, if you purchased 100 things at $3 each and paid $24 in shipping fees. The final price per item is $3.24.

step 2

By dividing $3.24 by 100, you can determine the additional cost. The additional fee is $324. To estimate a retail price that will make a profit, this computation must be performed for every product bought.

What is an Extended Cost?

step 3

Include any other fees that were incurred, like as taxes or delivery costs. Divide the total by the number of parts. The price of things ordered by the dozen or gross is determined in the same way.

Extended Cost-Effectiveness Analysis (ECEA)

Extended Cost-Effectiveness Analysis (ECEA) is a type of quantitative economic analysis that evaluates the financial and health effects of health policy.

It is an extension of cost-effectiveness analysis, which examines the relative costs and gains in health outcomes (in the form of years of life saved, premature deaths averted, quality- or disability-adjusted life years gained/averted, etc.) various interventions.

What is an Extended Cost?

In the economic analysis of health policies, ECEA also takes into account non-health benefits like financial risk protection and distributional effects like equality.

The primary goal of health policy is to enhance population-level health outcomes (such as a decrease in premature death and morbidity).

Health plans, however, can offer additional advantages that go beyond just the healthcare industry. An major non-health benefit of such policies is the provision of financial risk protection (FRP), or the reduction of individual and household poverty

In addition to increased health equality among the population by providing progressive redistribution of the health benefits and poverty prevented.

ECEA gives the evaluation of health policy in three areas:

1) Health improvements
2) Private expenses avoided
3) FRP; all per population grouping

We can also determine the outcomes of health improvements and financial security per dollar spent by assessing the overall expenditures of the strategy.

In this regard, every policy or intervention can be positioned in a two-dimensional space by 1) health benefits per dollar spending and 2) FRP per dollar expenditure.

When making decisions, policymakers can then graphically compare various policies and actions while considering a variety of factors.

In a broader sense, the additional dimension of assessment outside of the health sector is not restricted to financial advantages but may also include educational, agricultural, and environmental benefits, to mention a few.

ECEA is capable of evaluating disaggregation of any kind, including geographic and demographic data, in addition to the equality between various income quintiles.

Here is a list of recent ECEA studies:

Topic Policy instrument Country Publication(s)
Expanding surgical access Task sharing, public finance Ethiopia [2]
Home-based neonatal care package Public finance India [3,4]
Diarrhea and pneumonia treatment Public finance Ethiopia [5-8]
Human papillomavirus vaccination to prevent cervical cancer Public finance China [9]
Universal coverage for mental, neurological, and substance use disorders Public finance Ethiopia, India [10-13]
Selected ECEAs for cardiovascular diseases Public finance of interventions, tobacco taxation, regulation of salt China, Ethiopia, South Africa [14-16]
Motorcycle helmet laws Regulation Vietnam [17]
Use of liquefied petroleum gas and other clean energy sources in household Commodity subsidy India [18]
Postponing adolescent parity Education India, Niger [19]
Tuberculosis treatment Universal public finance; policies to improve ease of borrowing for treatment costs India [20]
Measles vaccine Conditional cash transfers Ethiopia [21]
Universal immunization Public finance India [22]
Water and sanitation Clean piped water and improved sanitation India [23]
Tobacco Taxation China, Lebanon, Armenia [16, 24-25]
Rotavirus vaccine Public finance India, Ethiopia, Malaysia [5,26]

*This list is adapted from:  Verguet and Jamison. 2018. Chapter 8. Health policy analysis: applications of extended cost-effectiveness analysis (ECEA) methodology in DCP3. In: Jamison DT, Nugent R, Gelband H, Horton S, Jha P, Laxminarayan R, eds. Disease Control Priorities. Volume 9: Disease control priorities, improving health and reducing poverty. Washington, DC: World Bank 2018.

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