ACCA Performance Management (F5) Certification Practice Exam

Which measure is focused on evaluating the achievement of objectives in a project?

1. Economy measure

2. Output measure

3. Efficiency measure

4. Effectiveness measure

The correct answer is: Effectiveness measure

In the context of project evaluation, the measure that focuses on evaluating the achievement of objectives is the effectiveness measure. Effectiveness is concerned with the extent to which a project meets its intended goals and fulfills its objectives. It assesses whether the desired outcomes have been achieved and how successfully the project has delivered the expected results. This measure helps determine if the project has made a meaningful impact and contributed to the overarching aims for which it was initiated. By concentrating on the achievement of objectives, the effectiveness measure provides valuable insights into the project's success and informs future decision-making regarding similar initiatives. Other measures, such as economy, output, and efficiency, have different focal points. Economy measures deal with the cost-effectiveness of resources used relative to the outputs produced; output measures focus on the quantity and quality of the deliverables generated by the project; and efficiency measures evaluate the relationship between inputs and outputs, assessing how well resources are utilized. Each of these measures holds significance in assessing performance, but only the effectiveness measure directly pertains to evaluating how well the project has achieved its goals.