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Value For Money

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Value For Money

  • This topic has 5 replies, 2 voices, and was last updated 2 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • April 30, 2023 at 8:25 am #683749
    VslVsl
    Participant
    • Topics: 4
    • Replies: 3
    • ☆

    Greetings Sir. Can you please help me in the following question.

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

    (1) Output does not usually have a market value, and it is therefore more difficult to measure effectiveness.

    Ans- Output does not usually have a market value, and it is therefore more difficult to measure efficiency.

    Sir, we usually compare the output with the desired result or objective in order to assess the effectiveness of a N.P.O. So shouldn’t this statement me true. Looking towards an early reply.

    April 30, 2023 at 5:20 pm #683760
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    By market value it is meaning that it has a price. For example, if a company produces TV’s then the output is TV’s and they have a market value (i.e. the selling price).

    Not-for-profit organisations are not usually producing products. For example, the output of a hospital is people who have been cured, and this does not have a selling price or market value.

    May 1, 2023 at 1:25 pm #683796
    VslVsl
    Participant
    • Topics: 4
    • Replies: 3
    • ☆

    Although I understood your explanation, but still i didn’t understood, why the statement is false. Can you please help me out sir

    May 1, 2023 at 5:30 pm #683806
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    It seems that maybe the book in which you found this has a typing mistake.

    Partly because the statement is true, but also the statement refers to effectiveness, whereas the answer you quote refers to efficiency 🙂

    May 1, 2023 at 7:35 pm #683817
    VslVsl
    Participant
    • Topics: 4
    • Replies: 3
    • ☆

    Sir, the question belongs to the kit of Kaplan, and they have not provided any explanation as to why it will be more difficult to measure efficiency.

    May 2, 2023 at 9:41 am #683832
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    I do not have the Kaplan Kit (only the BPP Revision Kit) so I cannot check what they have typed. Again from what you have typed it seems there is an error. Have you looked at the errata sheet on the website (using the code printed in your kit)?

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