Question 1

A public university is audited for 'Value for Money' (the 3 Es). The auditors find that the university successfully increased its graduate employment rate from 75% to 85% within six months of graduation, meeting its strategic goal.

Which of the 3 Es does this achievement primarily demonstrate?

Accepted Answer

Recall the definitions: Economy = spend less. Efficiency = spend well (ratio). Effectiveness = spend wisely (achieve goals).

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Confusing Effectiveness with Efficiency. Efficiency would be graduating more students for the same amount of money.

A public university is audited for 'Value for Money' (the 3 Es). The auditors find that the university successfully increased its graduate employment rate from 75% to 85% within six months of graduation, meeting its strategic goal.

Which of the 3 Es does this achievement primarily demonstrate?

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA MA — Management Accounting Practice Exam 5

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