ACCA FM · Chapter 1 · Question 5 of 10
A local authority measures the number of households served per $1,000 spent on its waste collection service. Which aspect of value for money is being measured?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Efficiency
Explanation
Efficiency compares outputs (households served) with the inputs used to produce them (money spent). Economy concerns the cost of the inputs only, and effectiveness concerns whether the service achieves its objectives, such as reducing uncollected waste. Profitability is not usually a goal of a public service.
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