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:

Economy

Efficiency

Effectiveness

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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Practice the full ACCA MA — Management Accounting Practice Exam 2

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