ACCA PM · Chapter 13 · Question 8 of 11
A public hospital reports that its cost per patient treated has fallen while the number and quality of treatments have been maintained. Which element of value for money does this best demonstrate?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Efficiency
Explanation
Efficiency is the relationship between outputs and inputs, so a lower cost per patient treated shows more output per $ of resource. Economy concerns obtaining inputs at the lowest cost, and effectiveness concerns achieving objectives or outcomes.
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