What is the formula for calculating the cost ratio,
Cost-effectiveness ratio = input cost/output benefit. Inputs are low and outputs are high, the cost-effectiveness ratio is low; inputs are high and outputs are low, the cost-effectiveness ratio is high. The lower the ratio, the better.
The cost-effectiveness ratio, or ROI, can be used to measure the effectiveness of a marketing campaign. Cost-effectiveness ratio is not only a simple figure, it also reflects the costing, process control, detail management, quantitative analysis and other scientific management concepts, from the input and output of the whole process of accurate management to improve the construction of a reliable method of efficiency.