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Performance measure for NFP

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Performance measure for NFP

  • This topic has 1 reply, 2 voices, and was last updated 7 months ago by John Moffat.
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  • November 24, 2021 at 8:06 am #641451
    AshleyMarc1997
    • Topics: 48
    • Replies: 24
    • ☆☆

    Is it true that we assess the performance of the not-for-profit organizations with value for money (i.e. 3E’s) which provides value for the money spent on the company and it is measured by resources input at the start of the period and compared with actual output at the end of the period to see whether the objective is achieved or not.

    While the performance of the private sector is measured in the standard profit in terms of money and it is done by budgeting for the upcoming period and compared with actual results at the end of the period to see whether the objective is achieved or not.

    November 24, 2021 at 4:06 pm #641485
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49617
    • ☆☆☆☆☆

    I explain the three E’s and give examples for each of them in my free lectures on not-for-profit performance measures.

    Performance in the private sector is measured using both financial measures (of which profit is just one) and also by non-financial measures. Again, both are explained in my free lectures.

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