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    PracticeACCAACCA PM — Performance Management Practice Exam 2Question 27
    Easy2 marksShort Answer
    Performance measurement and controlSyllabus ENot-for-ProfitValue for MoneyEfficiency

    ACCA · Question 27 · Performance measurement and control

    Section B - Case 3: CareNet

    CareNet is a global NGO providing mobile optical clinics in rural areas.

    In Region X, CareNet spent $50,000 (Input) to operate clinics for one month. They conducted 2,000 eye exams (Output). As a result, 1,500 people received corrective glasses, and follow-up surveys showed that 1,200 people reported significantly improved quality of life (Outcome/Objective).

    Calculate the Efficiency metric expressed as 'Cost per eye exam conducted'. (Enter your answer as a whole number).

    How to approach this question

    Divide the total input cost by the total output (number of exams conducted).

    Full Answer

    Efficiency measures the relationship between inputs and outputs. Input = $50,000. Output = 2,000 eye exams. Efficiency (Cost per exam) = $50,000 / 2,000 = $25 per exam.

    Common mistakes

    Calculating cost per person with improved quality of life ($50,000 / 1,200), which is a measure of cost-effectiveness, not efficiency.
    Question 26All questionsQuestion 28

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