ExpertEasy2 marksMultiple Choice
ACCA · Question 32 · F. Performance measurement
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?
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?
Answer options:
A.
Economy
B.
Efficiency
C.
Effectiveness
D.
Equity
How to approach this question
Recall the definitions: Economy = spend less. Efficiency = spend well (ratio). Effectiveness = spend wisely (achieve goals).
Full Answer
C.Effectiveness✓ Correct
Effectiveness measures the extent to which an activity achieves its intended objectives or outcomes. Increasing the graduate employment rate means the university is effectively achieving its educational and societal goals.
Common mistakes
Confusing Effectiveness with Efficiency. Efficiency would be graduating more students for the same amount of money.
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