Section B - Case 3: GlobalCare

GlobalCare is an international NGO focused on providing clean drinking water in developing nations.

One of GlobalCare's key performance indicators (KPIs) is 'Number of water wells drilled per $100,000 of funding'.

Under the 'Value for Money' framework, how should this KPI be classified?

Answer options:

Economy

Efficiency

Effectiveness

Equity

How to approach this question

Analyze the KPI: it compares an output (wells drilled) to an input (funding). This is the definition of efficiency.

Full Answer

B.Efficiency✓ Correct

Efficiency is the relationship between inputs and outputs. A KPI that measures how much output (wells) is generated from a specific amount of input (money) is an efficiency measure. Economy would just look at the cost of the inputs, while Effectiveness would look at whether the wells actually improved health outcomes.

Common mistakes

Confusing Efficiency with Effectiveness.

Question 25 All questions Question 27

Practice the full ACCA PM — Performance Management Practice Exam 3

32 questions · hints · full answers · grading

More questions from this exam

Q1Section A LogiChain is a global logistics firm that has recently migrated its entire fleet track...Easy Q2Section A RetailX, a fast-fashion retailer, is implementing a Big Data analytics system to analy...Medium Q3Section A EduTech Solutions is developing a new online certification course. The market research...Medium Q4Section A BioGen is a pharmaceutical company that spends heavily on research and development (R&...Easy Q5Section A Artisan Bakes produces a specialty sourdough bread. The bottleneck resource is the fer...Medium

View all 32 questions →