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Mapa mental

A: Value for Money

Shahid Musthafa ACCA F9: Financial Management Master Inglés

Contenido del mapa

A: Value for Money

  1. the performance measurement of a Non for profit organisations can be accessed through its achievement of the Value for money criterion .This can be achieved by maximizing the three "E's"

    • E
      • Economy
        • Using the least cost option to provide a requirement
    • E
      • Efficiency
        • Maximising the ratio of output to input
    • E
      • Effectiveness
        • The extent to which objectives are achieved.
  2. Since profit is not available as a performance measure in a non-profit-making organisation, other performance measures need to be considered.

    • The value for money principle should ensure that the service is provided for minimum cost, or that the maximum benefit is achieved by the users of the service for the sum of money provided to fund the service organisation.
  3. CASE 1

    • By purchasing a cheap component for a system, we may achieve economy
      • by producing an output at an increased level due to the reduced cost involved, we have achieved efficiency
        • but if the quality is poor then the effectiveness objective is not achieved.
  4. TESTING EFFECTIVENESS OF VALUE FOR MONEY

    • Comparing the Actual performance with the non financial targets and financial targets
    • By conducting surveys and questionare with the audience of the services offered
    • Appointing regulators or experts to monitor performance

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Descripción
Master (A: Financial Management Function) ACCA F9: Financial Management Mapa Mental sobre A: Value for Money, creado por Shahid Musthafa el 08/10/2013.
Creado por
Shahid Musthafa · oct 2013
Actualizado
12 ene 2017
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