ACCA MA · Chapter 14 · Question 11 of 11
In assessing value for money in a public sector organisation, what does 'economy' mean?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Obtaining inputs of the right quality at the lowest cost
Explanation
Value for money is assessed using the 3Es. Economy concerns the cost of inputs (spending less). Efficiency is the relationship between inputs and outputs (spending well). Effectiveness is whether objectives are achieved (spending wisely).
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