L3M1 practice question 6 of 10
Doing the same with fewer resources is:
Full set: 90 questionsIn procurement and operations performance evaluation (often evaluated via the "3 Es" framework: Economy, Efficiency, and Effectiveness), efficiency refers to the relationship between inputs (resources) and outputs. Achieving the same output while using fewer resources (or producing greater output with the same inputs) is the precise definition of operational efficiency.
B. Effectiveness measures the extent to which intended goals or outcomes are achieved ("doing the right things"), irrespective of resource consumption.
C. Economy focuses on minimizing the acquisition cost of input resources while preserving appropriate quality.
D. Option D duplicates Option A; Efficiency is the correct standard term for this input-output operational ratio.
1. CIPS Study Guide: L3M1 Procurement and Supply Environments, Module 1, Section 1.2 "Performance Measurement and the 3 Es".
2. National Audit Office (NAO). (2020). Value for Money Handbook, Section 2 "The 3Es Framework", pp. 6–8.
Keep practicing
Take the free L3M1 practice test
Ten exam-style questions with answers and explanations, plus the exam facts and study guides.
More questions
Other L3M1 practice questions
- Question 1The Equality Act in the UK was introduced in which year?
- Question 2The primary purpose of a public sector organisation is to:
- Question 3Under a contract with a price adjustment clause, which of the following would commonly be…
- Question 4Sources of finance for a public sector entity are primarily (select one):
- Question 5An arrangement between a buyer and a supplier in which they agree to apportion benefits (…
- Question 7Which of the following are examples of renewable resources?
