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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › non for profit
The following statements have been made about measuring performance in not-for-profit
organisations:
(1) Output does not usually have a market value, and it is therefore more difficult to
measure effectiveness.
(2) Control over the performance can only be satisfactorily achieved by assessments of
‘value for money’.
Which of the above statements is/are true?
– The answer is statement 2.
-Could you explain how statement 1 not be the answer?
-Also, how statement 2 is correct?
The market value of outputs is nothing to do with effectiveness.
With regard to (2) you need to watch my lectures – it is always value for money that is important for not-for-profit organisations!