ACCA AA · Chapter 3 · Question 6 of 8
In a value for money review, what does 'efficiency' mean?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) The relationship between the outputs produced and the resources used to produce them
Explanation
The three Es are economy (minimising the cost of inputs), efficiency (maximising output for a given input, or the ratio of outputs to inputs) and effectiveness (achieving objectives). Compliance with laws is the focus of a compliance review rather than a value for money concept.
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