Which type of analysis uses the average cost method and/or the case study marginal approach?

Fiscal impact analysis evaluates a development’s financial impact on a municipality, often using the average cost method (assigning average costs per unit, e.g., per resident) or the case study marginal approach (assessing incremental costs based on similar cases). Option A (fiscal impact) matches this description. The APA’sAICP Certification Exam Content Outline(2022), under “Plan Implementation,” states, “Fiscal impact analysis commonly uses the average cost method and case study marginal approach to estimate costs and revenues.” Option B (economic impact) focuses on broader economic effects, not municipal finances. Option C (multi-variate statistical) is a statistical method, not specific to cost analysis. Option D (development pro-forma) assesses project profitability, not municipal impact. TheCPC Study Manual(2024) confirms, “Fiscal impact analysis uses methods like average cost and case study marginal approaches,” supporting option A.