Value for money
Value for money assesses how well resources are used, commonly through economy, efficiency and effectiveness. Economy concerns obtaining suitable inputs at appropriate cost; efficiency concerns output relative to inputs; effectiveness concerns achievement of intended objectives. The criteria and evidence must fit the particular activity.
Worked example
A hospital buys supplies at competitive prices, treats more patients per staff hour and meets its treatment-time objective; each illustrates a different aspect.
Common mistake
Low spending alone does not demonstrate value for money if outcomes are poor or service quality is inadequate.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | APM | Direct | September 2026–June 2027 |
| ACCA | MA | Direct | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |