ExpertEasy2 marksShort Answer
ACCA · Question 27 · Performance measurement and control
Section B - Case 3: CareNet
CareNet is a global NGO providing mobile optical clinics in rural areas.
In Region X, CareNet spent $50,000 (Input) to operate clinics for one month. They conducted 2,000 eye exams (Output). As a result, 1,500 people received corrective glasses, and follow-up surveys showed that 1,200 people reported significantly improved quality of life (Outcome/Objective).
Calculate the Efficiency metric expressed as 'Cost per eye exam conducted'. (Enter your answer as a whole number).
Section B - Case 3: CareNet
CareNet is a global NGO providing mobile optical clinics in rural areas.
In Region X, CareNet spent $50,000 (Input) to operate clinics for one month. They conducted 2,000 eye exams (Output). As a result, 1,500 people received corrective glasses, and follow-up surveys showed that 1,200 people reported significantly improved quality of life (Outcome/Objective).
Calculate the Efficiency metric expressed as 'Cost per eye exam conducted'. (Enter your answer as a whole number).
How to approach this question
Divide the total input cost by the total output (number of exams conducted).
Full Answer
Efficiency measures the relationship between inputs and outputs.
Input = $50,000.
Output = 2,000 eye exams.
Efficiency (Cost per exam) = $50,000 / 2,000 = $25 per exam.
Common mistakes
Calculating cost per person with improved quality of life ($50,000 / 1,200), which is a measure of cost-effectiveness, not efficiency.
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