Section B - Case 3: ClearFlow Initiative
ClearFlow is a Not-For-Profit (NFP) NGO dedicated to providing clean drinking water in rural communities. They measure their performance using the 'Value for Money' (VFM) framework, often referred to as the 3 Es.
During the year, ClearFlow negotiated a bulk discount with a supplier, reducing the cost of purchasing water filtration pumps from $500 per unit to $450 per unit.
Which of the 3 Es does this achievement directly demonstrate?
ACCA · Question 29 · Performance measurement and control
Section B - Case 3: ClearFlow Initiative
ClearFlow is a Not-For-Profit (NFP) NGO dedicated to providing clean drinking water in rural communities. They measure their performance using the 'Value for Money' (VFM) framework, often referred to as the 3 Es.
ClearFlow is considering adopting the Balanced Scorecard. However, the traditional Balanced Scorecard was designed for commercial businesses.
Which TWO of the following adaptations are typically necessary when applying the Balanced Scorecard to a Not-For-Profit organization like ClearFlow?
Answer options:
The 'Customer' perspective is often renamed to 'Beneficiary' or 'Stakeholder' perspective.
The Financial perspective is completely removed from the scorecard.
The Financial perspective is demoted from being the primary overarching goal, acting instead as a constraint or enabler.
The 'Internal Business Process' perspective is replaced by a 'Political Lobbying' perspective.
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