ExpertEasy2 marksMultiple Choice
ACCA · Question 34 · Performance measurement
A government health department is assessing the 'Value for Money' of a public vaccination program. They measure the cost per dose of vaccine purchased from suppliers.
Which of the '3 Es' is being measured here?
A government health department is assessing the 'Value for Money' of a public vaccination program. They measure the cost per dose of vaccine purchased from suppliers.
Which of the '3 Es' is being measured here?
Answer options:
A.
Economy
B.
Efficiency
C.
Effectiveness
D.
Equity
How to approach this question
Match the metric to the definition: Economy (cost of inputs), Efficiency (input/output ratio), Effectiveness (achieving objectives).
Full Answer
A.Economy✓ Correct
Economy measures the cost of securing inputs (spending less). Efficiency measures the output per unit of input (spending well). Effectiveness measures the achievement of outcomes (spending wisely). Cost per dose is an input cost, hence Economy.
Common mistakes
Confusing Economy with Efficiency.
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