ACCA PM · Chapter 13 · Question 10 of 11
Which of the following is a particular difficulty in measuring the performance of not-for-profit organisations?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) They often have multiple objectives whose outputs are hard to quantify in money terms
Explanation
Not-for-profit organisations usually pursue several, sometimes conflicting, non-financial objectives, such as health, education or social outcomes, which are difficult to measure and value. Profit is not their aim, so value-for-money measures are used, and they are accountable to many stakeholders such as funders and the public.
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