Page 20 - F3 Integrated Workbook STUDENT 2019
P. 20
Chapter 1
Example 2
Value for money is an important objective for not-for-profit organisations.
Which action is LEAST consistent with increasing value for money?
A Using a cheaper source of goods without decreasing the quality of the
not-for-profit organisation services
B Searching for ways to diversify the finances of the not-for-profit
organisation
C Decreasing waste in the provision of a service by the not-for-profit
organisation
D Focusing on meeting the objectives of the not-for-profit organisation
Solution
The answer is (B).
VFM is about achieving economy, effectiveness and efficiency. (A) achieves
economy. (C) achieves efficiency and (D) achieves effectiveness.
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