The official business definition of cost effective is the ability to achieve a desired outcome or result at the lowest possible cost. This definition is important for businesses to understand, as it helps them make decisions about how to best allocate resources and ensure they are getting the most out of their investments. Cost effectiveness can be measured in terms of the cost per unit of output, or the cost per unit of benefit. It is important to note that cost effectiveness does not necessarily mean the cheapest option, but rather the most cost-effective option that still achieves the desired outcome. Cost effectiveness is an important factor in business decision-making, as it helps to ensure that resources are being used efficiently and effectively.