Question 1

**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?

Accepted Answer

Match the action (reducing the purchase price of an input) to the correct 'E' in the Value for Money framework.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Confusing Economy (cost of inputs) with Efficiency (outputs per input).

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA PM — Performance Management Practice Exam 4

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