- 12 Marks
Question
Adenta Municipal Assembly (AdMA) has established an ultra-modern library and internet facility for its inhabitants. It intends to subsidize the costs of using this facility for its inhabitants. This facility is to be evaluated by the local assembly (AdMA) to assess amongst other things, whether it is financially sound and offers value for money.
Required:
Suggest THREE (3) appropriate measures each of Financial, Economy, Efficiency, and Effectiveness that could be set for the facility based on targets. (12 marks)
Answer
a) Financial measures:
• Proportion of overall funds spent on administration costs
• Ability to stay within budget/break even
• Revenue targets met.
(3 points for 3 marks)
Economy targets:
• Costs of purchasing books of suitable quality
• Costs of negotiating for and purchasing equipment.
• Negotiation of bulk discounts
• Pay rates for staff of appropriate levels of qualification.
(3 points for 3 marks)
Efficiency targets:
• Levels of wastage of outdated books
• Staff utilisation
• Equipment life.
(3 points for 3 marks)
Effectiveness targets:
• Numbers using the library
• Customer satisfaction ratings
• Quality of books and speed of internet served
(3 points for 3 marks)
- Topic: Introduction to Financial Management
- Series: MAY 2019
- Uploader: Kwame Aikins