Skip to content

ACCA Applied Skills · Performance Management · Specific performance analysis issues in not-for-profit organisations and the public sector

A charity measures the efficiency of its helpline by cost per call handled. Last year it spent $240,000 handling 30,000 calls. This year it spent $270,000 handling 36,000 calls, but a survey shows many callers' problems were not resolved. Which statement is correct?

Cost per call fell from $8.00 to $7.50, which indicates improved efficiency. However, it is only an input-to-output measure and says nothing about whether callers' problems were solved, so it cannot show the helpline is effective in achieving its objectives.

  1. ACost per call fell from $8.00 to $7.50, but this does not show effectiveness was achievedCorrect
  2. BCost per call rose from $8.00 to $7.50, showing lower efficiency
  3. CCost per call fell from $8.00 to $7.50, proving the helpline is more effective
  4. DCost per call rose from $7.50 to $8.00, but effectiveness improved

Explanation

Last year: 240,000/30,000 = $8.00. This year: 270,000/36,000 = $7.50. Cost per call is an efficiency measure only; unresolved problems show effectiveness (achieving objectives) is not demonstrated. Claiming it proves effectiveness confuses efficiency with effectiveness.

Did you get it right without looking?

One question tells you little. A timed set on Specific performance analysis issues in not-for-profit organisations and the public sector shows your real accuracy, how long you take and where you lose marks.

Practise Specific performance analysis issues in not-for-profit organisations and the public sectorFree diagnostic mock

More Specific performance analysis issues in not-for-profit organisations and the public sector questions