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charitable organisation providing relief services to under-developed economies, which one of the
following performance measures would be the most suitable measurement of the effectiveness in the use of
the charity’s aid funds?Percentage of funds spent on frontline activities
Ratio of volunteer helpers to full-time employees in the organisation
Size of operating surplus
Total spending by the charity on its operationsanswer is option A …
Why not operating surplus ? that also shows how well i have utilized resources to achieve my objectives isnt it
and last option also looks right to meplease help 🙁
Not the operating surplus. This is effectively the profit and although they need to keep some money in reserve for the future, a bigger surplus means less is spent providing relief services.
Not the total spending, because they will be spending money on other things – for instance the head of the charity might be being paid an enormous salary and that is money that is not going to provide relief services.
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