ExpertEasy2 marksMultiple Choice
ACCA · Question 26 · Performance measurement and control
Section B - Case 3: CareNet
CareNet is a global NGO providing mobile optical clinics in rural areas. They evaluate their performance using the 'Value for Money' (3Es) framework.
CareNet recently negotiated a 15% discount on the purchase of diagnostic eye-testing equipment by buying in bulk.
Which of the 3Es does this achievement primarily demonstrate?
Section B - Case 3: CareNet
CareNet is a global NGO providing mobile optical clinics in rural areas. They evaluate their performance using the 'Value for Money' (3Es) framework.
CareNet recently negotiated a 15% discount on the purchase of diagnostic eye-testing equipment by buying in bulk.
Which of the 3Es does this achievement primarily demonstrate?
Answer options:
A.
Economy
B.
Efficiency
C.
Effectiveness
D.
Equity
How to approach this question
Match the action (reducing the cost of inputs) to the correct 'E' in the Value for Money framework.
Full Answer
A.Economy✓ Correct
The 3Es are Economy (spending less), Efficiency (spending well/maximizing output for given input), and Effectiveness (spending wisely/achieving goals). Negotiating a discount on equipment is a reduction in the cost of inputs, which is a classic example of Economy.
Common mistakes
Confusing economy with efficiency.
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