Skip to content

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

A school spent $480,000 and taught 600 pupils. Last year it spent $450,000 and taught 500 pupils. Exam pass rates fell from 80% to 70%. Which statement is correct?

Cost per pupil fell from $900 (450,000/500) to $800 (480,000/600), so efficiency improved. However, the pass rate dropped from 80% to 70%, so effectiveness declined. The school is cheaper per pupil but achieving worse results.

  1. ACost per pupil rose from $800 to $900, showing efficiency improved
  2. BCost per pupil fell from $900 to $800, so efficiency improved, but effectiveness as measured by pass rate fellCorrect
  3. CCost per pupil fell from $900 to $800, so both efficiency and effectiveness improved
  4. DCost per pupil rose from $800 to $900, and effectiveness fell

Explanation

Last year: 450,000/500 = $900 per pupil. This year: 480,000/600 = $800 per pupil. Cost per pupil fell, so efficiency improved. The pass rate fell from 80% to 70%, so effectiveness in achieving results worsened. Options reversing the cost figures are wrong calculations.

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