ACCA Financial Management (F9) Certification Practice Exam

What does "value for money" aim to achieve?

1. Maximizing revenues for shareholders

2. Getting the best combination of services for the least resources

3. Minimizing the number of employees required

4. Increasing the price of products sold

The correct answer is: Getting the best combination of services for the least resources

"Value for money" is a concept primarily aimed at achieving the best possible outcome relative to the amount of resources expended. This entails ensuring that the services provided meet the needs of stakeholders effectively while also making efficient use of available resources. The essence of value for money lies in optimizing the relationship between cost and benefits, thereby striving to deliver high-quality services at the lowest possible cost. In this context, focusing on getting the best combination of services for the least resources embodies the fundamental principle of value for money. This approach not only emphasizes cost-effectiveness but also considers the quality and effectiveness of the services or products delivered. It is crucial in both the public and private sectors, as it ensures that both social and economic objectives can be met without unnecessary expenditure. The other options miss the broader implications of value for money. For instance, maximizing revenues for shareholders only highlights a narrow financial perspective rather than considering the overall value delivered to customers and the community. Minimizing the number of employees may lead to cost savings in the short term, but it does not necessarily contribute to a better service or product quality. Increasing the price of products sold does not align with the goal of providing value for money, as it could reduce consumer satisfaction and demand, which contradicts the underlying