Answer to Question 1
Cost benefit evaluation examines the monetary costs of training with all the non-monetary benefits that the training is likely to bring. For example, if the training was on making supervisors more approachable, the benefits might be more satisfied workers, less labor strife, and so forth. These things are difficult to measure monetarily but are an important benefit.
Cost effectiveness evaluation compares the financial cost of training to the financial benefits. Here the value of the training is translated into dollars based on one of two methods. Cost savings analysis examines the savings that accrue given there are fewer grievances filed (because supervisors are more approachable), or any other savings that accrue from the training. Utility analysis goes one step further and estimates the value of the new behavior exhibited and puts a value on that based on estimates from the supervisor's supervisor. Then, the formula for determining the effectiveness of training is used to calculate the savings.
Answer to Question 2
Answer: B
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