Describe the three elements of VFM
【参考答案及解析】
The value for money (VFM) concept has been developed as a useful means of assessing performance in an organisation which is not seeking profit. VFM concept revolves around the 3Es； as follows: If you follow through the diagram above, you will see that, ultimately, VFM relates money spent to objectives achieved. • Economy (an input measure) - measures the relationship between money spent and the inputs. Are the resources used the cheapest possible for the quality required? • Efficiency (link inputs with outputs) - is the maximum output being achieved from the resources used?Effectiveness (links outputs with objectives) - to what extent to which the outputs generated achieve the objectives of the organisation.
The value for money (VFM) concept has been developed as a useful means of assessing performance in an organisation which is not seeking profit. VFM concept revolves around the 3Es； as follows: If you follow through the diagram above, you will see that, ultimately, VFM relates money spent to objectives achieved. • Economy (an input measure) - measures the relationship between money spent and the inputs. Are the resources used the cheapest possible for the quality required? • Efficiency (link inputs with outputs) - is the maximum output being achieved from the resources used?Effectiveness (links outputs with objectives) - to what extent to which the outputs generated achieve the objectives of the organisation.