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Not-for-profit organisation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Not-for-profit organisation

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.
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  • August 16, 2020 at 1:00 pm #580760
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    sir the answer to the following statement is false, but i don’t understand why? would you mind explaining it to me?

    Which of the following statements regarding measurement of performance in not?for? profit organisations is/are true?

    “Output does not usually have a market value, and it is therefore more difficult to measure effectiveness.”

    thank you.

    August 16, 2020 at 3:58 pm #580783
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54765
    • ☆☆☆☆☆

    The fact that it doesn’t have a market value does not need to make it more difficult to measure.

    A school might measures it’s effectiveness by looking at the % of student who pass their exams. That isn’t difficult for them to measure.

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