The purpose of the Circular is to “promote efficient resource allocation through well-informed decision-making by the Federal Government.” In addition to proving general guidance for conducting benefit-cost analyses, Circular A-94 also serves “as a checklist of whether an agency has considered and properly dealt with all the elements for sound benefit-cost and cost-effectiveness analyses.”

The Circular applies to a variety of calculations including regulatory impact analysis and benefit-cost or cost-effectiveness analysis of Federal programs or policies as well as to lease-purchase decisions and asset valuation and sale analysis.